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MCV has learnt that a number of retailers and suppliers are putting plans and finances in place to ensure they are ready to acquire potentially cut-price assets should GAME go into administration this week.
If a deal is not struck by the weekend it is likely that GAME will be entered into administration, at which point third parties will be free to move for the company’s assets.
These include existing stock, IP (such as game.co.uk) and owned assets such as its Basingstoke HQ.
Deloitte could, of course, choose to retain the company’s assets for a short period as it pursues other options.
However, with GAME Group’s total debt believed to be in excess of 180m, the company will come under extreme pressure to begin paying lenders sooner rather than later – a situation that could quickly lead to asset stripping.
