Having already lost some big titles including Mass Effect 3 and Street Fighter X Tekken, the Game Group suffered another blow as both Capcom and Tecmo Koei have pulled their titles Resident Evil: Operation Raccoon City and Ninja Gaiden 3 from store shelves.
Shares in the company fell another 65% leaving individual shares at a meagre 1.15p, the media speculation about the company and it’s future has reached such a level that Game issued a new statement yesterday.(I have highlighted the most important section in bold)
“Further to GAME’s announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3 February 2012, and to meet its revised strategic plan. While these discussions are ongoing, it has not been possible to source new products from a number of suppliers.
The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.
It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company.”
It has also been reported that the Game Group are in active discussions with administration experts Deloitte about handling the insolvency if/when the retailer enters administration.
The final nail in the coffin for Game could come as early as the end of the month when they face the rent bill for the next quarter. In an effort to raise some cash Game and save the company Game have started what some have deemed a “fire sale” but this may be too little too late if Game cannot gain new stock to sell
On a slightly positive note for consumers, it is now rumoured that several companies are on the horizon ready to snap up different parts of the business should the inevitable happen.