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UK Retailer GAME is dead | Brera's Lament
- Thread starter CrunchinJelly
- Start date
- Status
checkeredknight
Member
Diablohead
Member
Sad day for those who work for game, I know 3 people who work for game and gamestation in my town (two are good old school friends) so this sucks big time for everyone.
About £200.
StalkerUKCG
Banned
So the quarterly stores lease is up Sunday, Thats the longest i can see the stores been open till
industrian
will gently cradle you as time slowly ticks away.
I'm sure Brera will bounce back. I heard that Craig Whyte needs a new financial advisor.
Shotgun Kiss
Member
So what's happening regarding the rent being due on Sunday? Game filing for administration means they can't be forced to pay any debts or clear any assets for 10 days, but surely that would only apply to existing debts? If all their stores remain open after Sunday, that would mean they're entering into a new rent lease that they don't intent to fully pay (as it's inevitable that a lot of stores will be closing).
Shotgun Kiss: Maybe they'll be given some slack due to being in administration?
I'll be out on the vultch later on, hoping they bring some more prices down to my level, but I'll also make sure to give my condolences to all those who will lose (have lost?) their jobs. Believe me, I know the pain that awaits them.
Or on the other hand, maybe some of them are still in denial, as Gowans' post illustrates. I can understand that too, but it's only the first stage of Kubler-Ross. Four stages to go, and only four days to do it in.
I'll be out on the vultch later on, hoping they bring some more prices down to my level, but I'll also make sure to give my condolences to all those who will lose (have lost?) their jobs. Believe me, I know the pain that awaits them.
Or on the other hand, maybe some of them are still in denial, as Gowans' post illustrates. I can understand that too, but it's only the first stage of Kubler-Ross. Four stages to go, and only four days to do it in.
Psychotext
Member
Less pride, more ignorance in most cases.
Or, perhaps, less ignorance, more Stockholm Syndrome.
J Tourettes
Banned
Possible, but not probable. I would assume they still want your custom.
Vagabundo: The lease runs out on Sunday, so that may be their last trading day.
Out of interest: Do reward cards technically mean that Game are in debt with the holder?
HuntTheMusic
Neo Member
I wouldn't expect any further price drops until the Company formally enters into administration. At the moment they are protected from all creditors including the bank due to the interim moratorium.
Zomgbbqftw has it bang on for me. There is no way the bank are going to let the clowns in the board room appoint their own administrator. I would expect a bank challenge by early next week appointing their choice of administrator and a pre packaged sale to be agreed maintaining the profitable stores to a third party by the end of next week.
I think probably 30-40% of the workforce will be made redundant following appointment/sale and the buyer will restructure completely.
For those asking about store closures no stores will close until an administrator is appointed due to the protection of the moratorium irrespective of when the rent is due. Don't rule out an extension of the moratorium either if it can be proved that talks of a pre packaged sale are at an advanced stage this could drag on for a couple more weeks yet.
Their is a high chance that the fire sale discounts everyone is waiting for won't happen at all if a pre packaged sale materialises unless the buyer wants to dump a large percentage of the aged physical stock.
Zomgbbqftw has it bang on for me. There is no way the bank are going to let the clowns in the board room appoint their own administrator. I would expect a bank challenge by early next week appointing their choice of administrator and a pre packaged sale to be agreed maintaining the profitable stores to a third party by the end of next week.
I think probably 30-40% of the workforce will be made redundant following appointment/sale and the buyer will restructure completely.
For those asking about store closures no stores will close until an administrator is appointed due to the protection of the moratorium irrespective of when the rent is due. Don't rule out an extension of the moratorium either if it can be proved that talks of a pre packaged sale are at an advanced stage this could drag on for a couple more weeks yet.
Their is a high chance that the fire sale discounts everyone is waiting for won't happen at all if a pre packaged sale materialises unless the buyer wants to dump a large percentage of the aged physical stock.
zomgbbqftw
Banned
No, points are a promotional consideration, not a cash equivalent like a gift card. If you have a bunch of Game points I suggest you go and spend them now on PSN/XBL credit as the administrator will not consider people with points holdings as owed any money.
I thought it was formally in admin - they announced it themselves yesterday, didn't they?
HuntTheMusic
Neo Member
No they announced their intention to appoint an administrator.
Press release is HERE if you would like to have a look.
Hunt is right imho, I work in a small sector of Corporate Finance (Asset and Leasing) and in my experience if there is something to be salvaged it will be (under new management).
I would guess at a massively scaled down brand, maybe one store in each major city / town (so probably half their current output).
I would guess at a massively scaled down brand, maybe one store in each major city / town (so probably half their current output).
I only have a pittance and I'm not sure I can find the card, oh well!
All I could really buy with the points I have is controlling stock in the company, and who'd want that?
zomgbbqftw
Banned
No, they are not technically in administration yet. The banks will contest it first and appoint their own administrator, not the ones appointed by the wankers who got Game into such bad shape in the first place.
I assume by 'contest' you mean at a court of law, could a judge rule in favor of of a GMG picked administrator rather than a RBS picked administrator?
zomgbbqftw
Banned
Yes, but because the bank is the secured creditor they will get whomever they want.
Oh a PSN card, good idea. I'd better take a trip up to them. It's only a fiver though, pretty small in the grand scheme of things.
My local Game store does a huge amount of business, even though the Sq footage is small. If I had the capital and time I'd immediately grab the lease and setyup a game store there, even try to keep the staff.
My local Game store does a huge amount of business, even though the Sq footage is small. If I had the capital and time I'd immediately grab the lease and setyup a game store there, even try to keep the staff.
APZonerunner
Member
Company wide they're out of £5/£10 PSN cards - even digitally - if the situation is the same as it was last time I went in. You can get £15 and up, though.
Ive been reading up on all this and this is far from the end! Until the far lady sings, I'm still in for a chance! HMV was delisted and look what happened there? 800% profit that's what!
There are still 10 days or so left. I predict GMG shares will be bought and sold by Wednesday.
At a healthy profit!
There are still 10 days or so left. I predict GMG shares will be bought and sold by Wednesday.
At a healthy profit!
Seperate, as far as I know.
Dr Frasier Crane
Member
I bet you a pound they won't.
Who, if anyone, will buy GAME?
Leading financial and retail experts are all eyeing up a move for GAME Group.
But as-of-yet only one has made a firm offer.
Some GAME rivals have even readied funds in preparation of a possible administration with the firms 19.4m loyalty card database and GAME.co.uk domain amongst the targets.
But some suitors want to acquire the company in tact.
Who is it?
OpCapita is a private investment firm, which made the headlines last year for buying troubled electronics retailer Comet for £2. It has built a reputation as a company that turns around ailing retailers.
Why is it interested?
It believes the games industry still needs a specialist retailer and is particularly attracted to its large, loyal customer base, plus its pre-owned business. It has identified online as a huge growth area.
What are the benefits?
The firm has no intention of immediately cutting staff and has got a management team ready. OpCapita has already turned around French furniture retailer BUT and Comet just posted its best month of sales for two years.
Whats the problem?
OpCapita has offered to buy GAMEs debt, but lenders have so far refused. A deal might mean a debt for equity swap which could result in shareholders missing out. OpCapita is also unafraid to make sweeping cuts having laid off 1,000 Comet staff.
Who is it?
Only one of the biggest retailers in the world. The US giant is already a big player in games and owns supermarket chain Asda. It has 8,500 stores worldwide and it generated $421.8bn in revenue last year.
Why is it interested?
Its not entirely clear. Wal-Mart could be looking to grow its Asda store base to help it better compete with Tesco.
What are the benefits?
Wal-Mart is a global powerhouse and any significant investment in the UK High Street will be a massive boost to the sector. Investor chatter has also suggested that 12p a share might be on offer, which will be good for shareholders.
Whats the problem?
Wal-Mart is unlikely to need two stores in every city, so expect some branches to be closed. Also, its not clear if Wal-Mart wants GAME or just the store base. A whole host of mini Asdas wont be much use to the games industry.
Who is it?
The biggest games retail specialist in the world. No.1 in the US and other territories. It owns leading consumer magazine, Game Informer. It also owns download firm Impulse, social games portal Kongregate and streaming service Spawn Labs.
Why is it interested?
GameStop has a very small presence in the UK with its website and is currently lagging behind GAME in Spain and Portugal. This acquisition would make it the market leader in two major territories over night.
What are the benefits?
Store staff will be largely unaffected and the UK industry will still have a strong games specialist. In fact, with GameStops various digital and publishing business, it could be an even stronger presence than GAME.
Whats the problem?
Reports suggest GameStop doesnt want GAMEs Aussie or French outlets (see story, right) as it already has a strong presence in these markets. A move by GameStop will likely only happen if GAME enters administration so it can pick parts of the business it wants.
Who is it?
Hilco is a retail restructuring firm, and has a history of helping retailers in distress including Borders, HMV Canada, LittleWoods, Somerfield and Woolworths.
Why is it interested?
According to reports, Hilco believes GAMEs international outlets are profitable and that many of these territories still need a games specialist.
What are the benefits?
The company is filled with retail experts from the US and UK and is world renown for investing in the sector and offering advice to troubled outlets.
Whats the problem?
It only wants to purchase GAMEs international businesses including Spain and Australia. It has no interest in acquiring the firms main UK arm.
http://www.mcvuk.com/news/read/who-if-anyone-will-buy-game/093202
toythatkills
Member
Wow, quite the success rate. GAME will certainly be in safe hands there.
Cant really compare HMV to Game. Games were not the main focus of the HMV business, music, dvds blah blah and a healthy online business.
Just reading an article on eurogamer stating digital games now make up 45% of all uk sales. Shop fronted game shops is not the future imo.
J Tourettes
Banned
:lol Pretty much what I was thinking.
Cosmonaut X
Member
They "help" retailers in distress the same way a slaughterman "helps" the stock he deals with...
pieatorium
Member
It's definatey a reason that retail is shrinking but that 45% includes online physical and also includes Appstore games and other DD that isn't available via retail store
It probably also includes shipments to the rest of Europe where people are using the currency advantage.
zomgbbqftw
Banned
No way. The shareholders are last in line to get any returns. Since GMG owe about £180m today and reportedly have just about enough to cover the wage bill and half of their banking debts. The rest will have to made up by asset sales, a pre-packed sale of their profitable units and the GameStation brand could bring in £100m which will be enough to pay the banks off in full; the tax man and suppliers would get some of their money back. Next up is a general sale of everything else that is left over which could bring in £20-30m, that will bring in just about enough to pay staff another month of wages and pay the tax man and supplier the rest of their money. Smaller creditors and shareholders would be shit out of luck.
CrunchinJelly
formerly cjelly
A minuscule percentage at best.
Ravensmash
Member
Ooo, my points got refunded from when I tried to buy a £10 PSN voucher the other day.
So now I have £5.02 and will probably just pick up a PSN title from their website - will just pick out something that looks good !
So now I have £5.02 and will probably just pick up a PSN title from their website - will just pick out something that looks good !
Gareth Bale
Member
Spent the points I had left on their website on some PSN game called Linger in Shadows. I think that's all I could get with the points I had on there. Anyone want it?
Gareth Bale
Member
yes please.
PM sent
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