Martyn Gibbs has publicly backed Game Retail owners OpCapita following the collapse of Comet.
The electricals retailer – also owned by OpCapita – fell into administration at the start of the month, leading to some asking fresh questions of its stewardship of GAME.
But CEO Gibbs has in an interview with The Telegraph thrown his full support behind GAME’s owners, revealing that the retailer is forecast to make £20m in pre-tax earnings for the current financial year.
He also claims that GAME has maintained its 35 per cent UK market share despite the closure of half of its UK stores.
Gibbs explained that OpCapita had invested “significant millions” into the business, adding: “I have all the cash I need to trade through peak [period]. There has been nothing that I tabled that I didn’t get investment for. I can’t ask for more.”
The Telegraph adds that Game Retail has £106m of loans being held on a payment in kind basis, interest on which typically runs at nine per cent. And the company is continuing to operate without any form of credit insurance – the very problem that OpCapita has blamed for the collapse of Comet.
Also similar to Comet is the fact that OpCapita is positioned as Game Retail’s leading secured creditor, meaning that if things should go wrong it will be the main beneficiary.
UPDATE (15:57 12/10/12): The penultimate paragraph has been tweaked to reflect that fact that the claim of the £106m PIK loans was made by The Telegraph and not by Mr Gibbs as was previously suggested.