Report: GAME Directors Might 'Pull the Plug'

March 5, 2012 -

Investors and directors are not confident in UK games retailer GAME, and one report from The Express this weekend notes that company directors are considering "pulling the plug" on the entire operations rather than lose any more money. Executives at the top of the troubled retail chain are concerned that the retailer is negotiating big titles on a "game by game basis," and some investors could lose patience with that way of doing business.

"There is a real risk that Game’s directors will pull the plug because they can’t be sure that the company can survive through the next trading season, and then insolvency becomes inevitable," a source close to the situation told the publication. "They are in discussions with their legal advisers about whether to shut up shop rather than rack up more losses."

The source went on to say that the "immediate response from RBS" would be to close more stores. The source says that the "tipping point" for directors and lenders will have fewer products to sell.

They suspect that more problems like what has happened with EA and Ubisoft could be the end of it all.

Source: MCV


 
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