Search

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

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, 20:54
The shadow Home Secretary, Yvette Cooper, centre, with Jessica Asato, prospective parliamentary candidate for Norwich North; and Clive Lewis, prospective parliamentary candidate for Norwich South, at Bethel Street Police Station with placards against the police cuts on Thursday. Picture: DENISE BRADLEY

Shadow Home secretary Yvette Cooper attempted to take the election battle into the UK Independence Party’s (UKIP) heartlands on Thursday, hosting debates in Gorleston and Lowestoft on immigration.

Yesterday, 16:06
Olympic bronze medallist Anthony Ogogo offered a personal masterclass for the winning team on Wednesday evening

The latest BBC series of The Apprentice is in full swing- with hopefuls aiming to secure the ultimate prize of a £250,000 investment from Lord Sugar.

Yesterday, 14:06
Police and bomb disposal units at Kelly Pain Court, Lowestoft.

Picture: James Bass

Pupils in north Lowestoft are returning to their lessons and roads have been reopened after a Second World War hand grenade was removed by bomb disposal experts.

Yesterday, 08:33
Leah Davis with their surviving dog Titch.

Picture: James Bass

A family is calling for tougher penalties for the owners of aggressive dogs after their pet Chihuahua was attacked and killed by another dog near to their home in Gisleham.

Most Read

Yesterday, 14:06
Police and bomb disposal units at Kelly Pain Court, Lowestoft.

Picture: James Bass

Pupils in north Lowestoft are returning to their lessons and roads have been reopened after a Second World War hand grenade was removed by bomb disposal experts.

Read more
Wed, 06:30
Benjamin Britten high School headteacher  Andrew Hine.

Fears have been raised about a “really serious problem of low educational standards in Lowestoft” as a third secondary school out of four in the town is today put into special measures.

Read more
Yesterday, 08:33
Leah Davis with their surviving dog Titch.

Picture: James Bass

A family is calling for tougher penalties for the owners of aggressive dogs after their pet Chihuahua was attacked and killed by another dog near to their home in Gisleham.

Read more
Saturday, November 22, 2014
A house on Kirkley Run, Lowestoft remains cordoned off  after the body of a man was found.

Tributes have been paid to a Second World War Veteran who died during an incident at his home in south Lowestoft.

Read more
Yesterday, 20:54
The shadow Home Secretary, Yvette Cooper, centre, with Jessica Asato, prospective parliamentary candidate for Norwich North; and Clive Lewis, prospective parliamentary candidate for Norwich South, at Bethel Street Police Station with placards against the police cuts on Thursday. Picture: DENISE BRADLEY

Shadow Home secretary Yvette Cooper attempted to take the election battle into the UK Independence Party’s (UKIP) heartlands on Thursday, hosting debates in Gorleston and Lowestoft on immigration.

Read more

Local Weather

Partly Cloudy

Partly Cloudy

max temp: 12°C

min temp: 10°C

Digital Edition

Image
Read the Lowestoft Journal e-edition today E-edition