Responding to a report in the Times, troubled UK video game retailer GAME has issued a statement this morning confirming much of the news we noted on Friday that it is in discussions to sell the company and that it is still trying to negotiate with creditors to continue doing business.
The Times report claimed that financial services group Rothschild has been hired by the company to find a buyer for its holdings and that there is a two-week window for this to happen before it is forced into administration. The statement from the board of GAME says that negotiations are ongoing, but doesn't provide much hope for the retailer’s future.
"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," reads the statement. "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," it continues. "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."
The last part of the statement lays out the dire situation the company finds itself in at this point, and doesn't offer much hope for its future going forward:
"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."
We will continue to follow this story as it develops.
Source: GameIndustry International