GAME Group have been struggling now for some time, but it has came to a head as some suppliers are refusing to work with the company, sending their shares plummeting by 77 percent.
Game has said they were “working actively to resolve these issues as quickly as possible”, but it seems unclear if it will work. According to a report on the BBC it looks as if GAME will struggle to pay quarterly rent bills later this month.
A few weeks ago the company secured a lending deal with their banks, but this has failed to impress the suppliers.
There is no doubt that GAME are facing the toughest ever climate, having to deal with online retail giant Amazon and download services such as STEAM. Main street stores are facing a tough climate in general as they fail to compete against online retailers. With additional overheads such as property leasing, electricity and retail staff it can prove a delicate balancing act.
GAME own 1,300 stores worldwide, with 600 of these in the United Kingdom alone, under the brand names GAME and GAMESTATION.
Kitguru says: They are predicting an £18 million loss for the year.