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UK Retailer GAME is dead | Brera's Lament

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L

Linkified

Member
Brera said:
That's what I thought.

My £500 is worth £70, so fuck it, I'll stick another £50 in and see what happens.

I'm gambling on a HMV style save. They were at 1.something p one minute and ended the day 800% up!

Fingers, toes, penis crossed! I'll either rise to the heavens or fall to hell!
Click to expand...

Your already beyond hell, realistically you need to climb out off the abyss and hell, aka get back to the realm of humanity.
 
B

Brera

Banned
1,14

loadsamoney460x276.jpg
 
Z

zomgbbqftw

Banned
Brera said:
That's what I thought.

My £500 is worth £70, so fuck it, I'll stick another £50 in and see what happens.

I'm gambling on a HMV style save. They were at 1.something p one minute and ended the day 800% up!

Fingers, toes, penis crossed! I'll either rise to the heavens or fall to hell!
Click to expand...

Dude, HMV still had a good relationship with their main suppliers and creditors. Game do not. EA and the rest of the industry would rather see Game go under and a new company rise from its ashes than keep Game alive.

I think a pre-packed sale by the administrator of around 450 locations around Europe (250 in the UK) will bring in some money, but that will likely go to the staff and bank, not the shareholders. Shareholders are looking at 4-9p in the pound recovery.
 
Z

zomgbbqftw

Banned
HuntTheMusic said:
Shareholders are looking at a 0p in the pound recovery because they cannot recieve a penny until the Companys creditors have been paid.
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The creditors will get paid. A pre-packed sale of profitable locations will bring in quite a bit of money and the buyer will assume some of the debts as well and selling off other locations one by one to other retailers (think Tesco Express, Sainsburys Local) will be enough to clear the main bulk of their debt. The problem is after that there will be little left to return to trade creditors and shareholders.
 
H

HuntTheMusic

Neo Member
zomgbbqftw said:
The creditors will get paid. A pre-packed sale of profitable locations will bring in quite a bit of money and the buyer will assume some of the debts as well and selling off other locations one by one to other retailers (think Tesco Express, Sainsburys Local) will be enough to clear the main bulk of their debt. The problem is after that there will be little left to return to trade creditors and shareholders.
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Your not taking into account the administrators costs (which will be huge on an undertaking of this size). No potential purchaser is going to take on any of GAME groups liability or there is absolutely no point in doing a pre pack. In addition you can't really speculate what locations could be sold as retail leases tend to have break clauses in any insolvency proceeding. Its extremely unlikely that shareholders will recieve any money.
 
S

ScreenSplitter

Member
Nobody's mentioning that if Gamestop bought GAME, it'd be pretty much the same writing on the wall.

They have exactly the same business ethics of selling you 50 bits of tat before you walk out the door, making a killing on preowned, and failing to compete price-wise. Also people associate GAME with bad economics now; nobody's going to want that name.

The best they can hope for is cutting back into online retailerdom, but if they don't bother price competing they're just going to fail again.
 
H

herod

Member
ScreenSplitter said:
Nobody's mentioning that if Gamestop bought GAME, it'd be pretty much the same writing on the wall.

They have exactly the same business ethics of selling you 50 bits of tat before you walk out the door, making a killing on preowned, and failing to compete price-wise. Also people associate GAME with bad economics now; nobody's going to want that name.

The best they can hope for is cutting back into online retailerdom, but if they don't bother price competing they're just going to fail again.
Click to expand...

I suspect there can be a world of difference in profits if you stock and buy more sensibly, and get rid of the burdensome redundant real estate.
 
B

Brera

Banned
Europe’s largest dedicated video games retailer by sales said it was also exploring alternative sources of funding and “reviewing the position of all of its assets,” adding that difficulties in securing new releases from several suppliers had persisted.

“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,” Game said in a statement on Monday.

Shares fell 73.8 per cent to 0.92p in early London trading.

The news comes after comments by the chief of Electronic Arts, one of the world’s largest video games publishers by revenues, warned that it was “more likely than it was even a month ago” that a “major European retailer” would not “survive.”

“It was a risk a month ago,” said John Riccitiello, who did not name any retailer. “Now it looks like a fact, although we’re still praying for the lenders to get rational and keep them in business. You probably know who I’m talking about.”

Several suppliers, including EA and Nintendo, began holding back new releases from Game last month. Pressure has been intensifying on the group since it was forced to renegotiate its banking covenants earlier this year after poor sales over its peak Christmas period.

The retailer blamed a lack of new console releases and poor consumer sentiment for a near 13 per cent fall in sales, and it has also faced growing competition from online stores and supermarkets.

Rothschild, appointed to advise the retailer on a strategic review including the possible sale of its European business, has expanded its remit to look for a buyer for the entire company, which operates from 1,274 stores worldwide.

Peter Smedley, retail analyst at Charles Stanley Securities, said that “imminent” collapse into administration “is now a real possibility”, and that Gamestop, the US specialist retailer, was the most likely acquirer for Game’s assets.

“Whilst several potential buyers may well emerge during the sales process, we think the US-based Gamestop is the best positioned financially and strategically,” Mr Smedley said. “However, we would argue that Gamestop can afford to take its time and pick up the Game assets it really wants.”
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Looks like EA is on board. It's RBS that are behind all this!
 
L

Linkified

Member
ScreenSplitter said:
Nobody's mentioning that if Gamestop bought GAME, it'd be pretty much the same writing on the wall.

They have exactly the same business ethics of selling you 50 bits of tat before you walk out the door, making a killing on preowned, and failing to compete price-wise. Also people associate GAME with bad economics now; nobody's going to want that name.

The best they can hope for is cutting back into online retailerdom, but if they don't bother price competing they're just going to fail again.
Click to expand...

Gamestop owns GameInformer, Kongregate and Jolt Online. Game didn't diversify quick enough, had good intentions for having too separate brands - however - keeping almost identical reward programs, store pricing ultimately killed Game Group.
 
F

Foliorum Viridum

Banned
Popped in to my local GAME this morning and it was hardly bare - probably because the games they had discounted were shit and still too expensive. One or two titles were at a decent price, but I had them already.

I noticed they were selling PS3 controllers for £50. Absolutely mental.
 
L

Linkified

Member
Brera said:
Looks like EA is on board. It's RBS that are behind all this!
Click to expand...

Nope its not that its more like EA wants to try and distance themselves think about the headlines: "EA cost 1000 jobs" On the front of the Dailymail, not good for the EA brand even if it was indirectly.
 
B

Brera

Banned
This thread definantely needs a name change. I think it's because it's mainly UK centric. If this was GameStop, it would have mods all over it and a couple of thousand more posts!
 
P

PaulLFC

Member
Eurogamer said:
Stop the presses! Mass Effect 3 is the UK's new all-formats chart number one.

But exactly how well did it do? Chart-Track doesn't publicly reveal sales figures, but mentioned Mass Effect 3 was comfortably the biggest game launch of the year so far. It has already outsold the previous four number ones (SSX, Uncharted: Golden Abyss, UFC3 and Kingdoms of Amalur: Reckoning).

BioWare's third entry in its space opera trilogy outsold the launch weeks of Mass Effect 1 and 2 combined, although release dates on separate platforms were previously staggered.

73 per cent of Mass Effect 3's boxed sales were on Xbox 360, although that doesn't count digital downloads on PlayStation 3 or PC.

This all meant that last week's number one, SSX, was shunted into second spot ahead of new entry Street Fighter x Tekken, which landed third.
The Sims 3: Showtime scored sixth place, while PlayStation Vita shooter Unit 13 entered the charts for the first time in fifteenth.

Cinematic deity-filled beat-'em-up Asura's Wrath failed to chart at all, however. It, like Mass Effect 3, Street Fighter x Tekken and The Sims 3 Showtime, wasn't stocked by GAME.
FIFA 12, Mario Party 9, Mario & Sonic London Olympics, Modern Warfare 3, Assassin's Creed: Revelations and Zumba Fitness also made the chart's top flight.
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All of this without GAME or Gamestation stocking them.
 
N

Numpt3

Member
Wow this thread took a sudden turn. Once the dust settles I hope you guys who work at Game get yourself back on your feet quickly.

Brera, I'm sorry for your loss. If only certain people in this thread would have been more considerate and given you a little advice..... :p
 
B

Brera

Banned
PaulLFC said:
All of this without GAME or Gamestation stocking them.
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Mass Effect was always going to sell gangbusters. Everyone including EA knew this. But what will be effected is the smaller games. Asura's Wrath and SFvT would have seen a bump if they were at GAME. As it stands, it's highly unlikely those two games had any advertising or High St window presence.
 
B

Brera

Banned
m0ngo said:
Wow this thread took a sudden turn. Once the dust settles I hope you guys who work at Game get yourself back on your feet quickly.

Brera, I'm sorry for your loss. If only certain people in this thread would have been more considerate and given you a little advice..... :p
Click to expand...

I'm a newbie at this. I should have sold out on Friday when I was £200 and rebought at 0.5-0.7p today to try and stop my losses.

You life and learn. If it reaches 2p today, I'm selling up but it looks like 1.20p is the upper limit for this share right now. I'm hoping they are in crisis talks with their banks. 10'000 lost jobs is massive.
 
L

Linkified

Member
Brera said:
I'm a newbie at this. I should have sold out on Friday when I was £200 and rebought at 0.5-0.7p today to try and stop my losses.

You life and learn. If it reaches 2p today, I'm selling up but it looks like 1.20p is the upper limit for this share right now. I'm hoping they are in crisis talks with their banks. 10'000 lost jobs is massive.
Click to expand...

Eh, what?

Only 5,800 jobs in the UK, and that is the number that counts at the mo -
 
C

Castor Krieg

Banned
Brera said:
I'm a newbie at this. I should have sold out on Friday when I was £200 and rebought at 0.5-0.7p today to try and stop my losses.

You life and learn. If it reaches 2p today, I'm selling up but it looks like 1.20p is the upper limit for this share right now.
Click to expand...

How about you do what the rest of 95% of market player don't do - do your research? You know, actually understanding the fundamentals of accounting, and finance, instead of running around like a headless chicken?

Zombie is giving you good, sound advices based on financial data and history. You chose to ignore it.
 
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