Search

Fears for future of Game shops in Norwich, King’s Lynn, Great Yarmouth and Lowestoft

PUBLISHED: 11:36 21 March 2012

sb_game.jpg

game outside the castle mall

sb_game.jpg game outside the castle mall

Fears for the future of retailer Game intensified today after its shares were suspended and it admitted the business has no value.

The company, which operates 1,300 stores worldwide, including shops in Norwich, King’s Lynn, Great Yarmouth, Lowestoft and Bury St Edmunds was reported to be trying to raise £180m this week or face administration after several suppliers refused to provide it with new products.

It today said discussions were ongoing with a potential third party funder but it was unable to assess its financial position and was “of the opinion that there is no equity value left in the group”.

Its shares were suspended on the London Stock Exchange “pending clarification of the company’s financial position”.

Some 600 of Game’s stores are in the UK, employing 6,000 staff. All the group’s stores, which also include the Gamestation brand, are still open for business.

It is understood that one of Game’s main lenders, taxpayer-backed Royal Bank of Scotland, has objected to the terms of a rescue deal with private equity firm OpCapita, which recently bought electrical goods retailer Comet.

It has been reported that Game faces a £21m rent payment due on Sunday and a £12m wage bill at the end of the month, and owes more than £10 million in VAT and £40m to suppliers. A new investor would have to pay up to £100m to Game’s banks.

Game has borne the brunt of dire trading in recent months, which has forced the chain to ask its suppliers for more generous trading terms.

Some of them have instead stopped supplying Game with new releases, such as Mass Effect 3 and Street Fighter X Tekken, leaving fans disappointed and adding to the group’s trading woes.

Game agreed fresh lending facilities with banks last month and began seeking access to alternative sources of funding earlier this month.

It has already signalled that losses for the year to the end of January are likely to be around £18 million.

Comments have been disabled on this article.

Other news

10:00

A Bramford motorcyclist, who has admitted causing the death of his pillion passenger through dangerous driving by having a defective rear tyre, has been warned he could be jailed.

10:00

At the risk of sounding like I am making some political/ethical statement, which I am most definitely not doing, I can’t help but think we are missing an opportunity.

09:52

Free activities, music and fun is promised as the Lowestoft Summer Festival returns.

09:10

Firefighters have been kept busy dealing with three blazes in quick succession.

Most Read

Yesterday, 17:39

A road was blocked this evening following a collision between a cyclist and a lorry near Lowestoft.

Read more
England Ambulance Service
09:10

Firefighters have been kept busy dealing with three blazes in quick succession.

Read more
Carlton Colville
Yesterday, 15:04

A pedestrian suffered potentially serious arm injuries following a collision with a moped near Lowestoft.

Read more
Yesterday, 06:30

A Lowestoft man whose heart had to be restarted ten times after he suffered a cardiac arrest at work, has been reunited with the members of the emergency services who saved his life.

Read more
England Ambulance Service
09:52

Free activities, music and fun is promised as the Lowestoft Summer Festival returns.

Read more
Danny Steel

Later in Life

cover

Click here to view
the Later in Life
supplement

View

Local Weather

Partly Cloudy

Partly Cloudy

max temp: 20°C

min temp: 14°C

Show Job Lists

Digital Edition

cover

Enjoy the
Lowestoft Journal
e-edition today

Subscribe

Newsletter Sign Up

Sign up to receive our regular email newsletter