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.

Other news

Yesterday, 18:05

A high-profile former politician will bring plenty of pomp to a leading role in a spectacular family pantomime.

Yesterday, 17:10

More mums giving birth at home, merging services between three Norfolk hospitals and treating more patients in the community.

Yesterday, 17:04

A Lowestoft man has been given a suspended prison sentence after stealing items including a 65-inch TV.

Yesterday, 16:24

Stunning shot of Easton Bavents wins inaugural Suffolk Preservation Society competition, with Southwold and Ipswich scenes also shortlisted.

Most Read

Yesterday, 14:19

A theme park has had a roller-coaster ride after posting losses despite a growth in turnover, as the business aims to reduce its costs.

Read more
Yesterday, 12:54

A drunk customer who returned to a Suffolk pub brandishing a chainsaw after he was asked to leave by door staff has walked free from court after a judge decided not to send him straight to prison.

Read more
Ipswich Crown Court
Yesterday, 17:04

A Lowestoft man has been given a suspended prison sentence after stealing items including a 65-inch TV.

Read more
Yesterday, 12:56

Ten people have been arrested, quantities of drugs were seized and around £7,000 in cash has been recovered during a week of action focused on targeting drug supply in Lowestoft.

Read more
lowestoft
Yesterday, 09:53

An entrepreneur expanding her Kirkley salon said the area’s thriving business community has allowed her to take the next step.

Read more

Local Weather

Rain

Rain

max temp: 8°C

min temp: 5°C

HOT JOBS

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