The value of GAME’s assets needs to be reassessed to ensure that shareholders receive a rightful return on their investment, Blueshore Global has told MCV.
Having acquired new stock in the retailer yesterday before its filing for administration and stock freeze this morning, the company – which owns nine per cent of GAME – has expressed reservations about the upcoming period for the retailer.
“We were always prepared for the possibility of administration. We are though a little puzzled that the Board thinks there’s no equity value. We humbly disagree,” Blueshore boss Harsha Gowda told MCV.
“The company reported earlier in the year that their credit line was reduced not increased as reported in the media. GAME clearly stated in February that they will 'operate within lower limits of its existing facilities than was previously available'."
Gowda says that Blueshore was still acquiring GAME stock as recently as yesterday as the value of its raw assets have been misunderstood by the markets.
“The media has discussed the cost of all liabilities without mentioning the value of the assets such as inventory,” he added. “We believe, as per the financial statements, the value of these assets exceed the value of the liabilities.
“I want a proper valuation of GAME's assets, including its HQ, French deposit money and online operations.”
Harsha even stressed that he would be prepared to take legal action should he feel that administration is not correctly handled.
“Money collected from the potential sale go first to secured creditors, unsecured creditors and then shareholders. We believe there should be enough value to fulfill all of those obligations,” he insisted
“Even if, say, 50 per cent of stores are closed, the value received from the buyer of the other 50 per cent would be sufficient to pay off liabilities such as leases and severance and still off substantial positive value for shareholders.
“It needs to be a fair and just process. I’m confident, but a little concerned by the Board’s no equity value statement. We will protect our rights.”