Saturday, March 31, 2012

Investment capital firm set to rescue Game

Game Group

The investment group, Opcapita, will announce on Sunday it is buying the rump of the troubled Game Group out of administration, the BBC understands.

The deal will keep open 333 stores and save 3,100 jobs.

Half a dozen banks, led by Royal Bank of Scotland, who are owed £85m, have approved the takeover, says BBC business editor Robert Peston.

Last Monday the video game retailer went into administration, with 277 stores closing down immediately.

Administrators PricewaterhouseCoopers (PwC) also announced 2,104 staff would be made redundant but the remaining 333 stores were kept open as they searched for a buyer for the business.

The retailer had suffered from high fixed costs and an ambitious international expansion.

Its business has been hit by competition from online retailers.

Richard Wilson, chief executive of games industry trade association Tiga, welcomed the deal but said Game would have to develop its online business to survive.

He said: "It's important for the company to change to consumer spending habits, and it's really vital that Game also appeals to video game developers. Many video game developers in the UK are of course selling online as well.

"Game is going to have to change its strategy but that doesn't mean it's impossible, and the fact that Game has got this new backing behind it, this new management, I think that's all for the good."



Source & Image : BBC

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