Talks to save GAME have reportedly collapsed, with reports suggesting that it will enter administration tomorrow when an immediate sell-off of assets will begin.
The Express reports that the move will trigger a sale of GAME's most valuable assets in what it describes as “the biggest retail failure since Woolworths”. Thousands of jobs currently hang in the balance.
GameStop is believed to remain interested in some assets, although retail specialist Hilco has apparently withdrawn from negotiations. OpCapita reportedly tried to re-open talks on Friday but has once again been shunned.
“GAME is likely to go into administration on Monday and the process of selling its assets will begin but this won’t be a pre-pack, where a company is bought immediately out of administration,” a source is quoted as saying.
“There was contact between the banks and OpCapita late on Friday in the hope of reviving some sort of deal. The banks felt that selling GAME out of administration would leave them facing a colossal write down on what they invested.
“But, in the end, they decided there wasn’t enough value in what OpCapita were offering. It wasn’t anywhere near 100p in the pound.”
GAME's rent day is today, with a bill of £21m now hanging over the chain.
Effectively, this means that if a pre-pack administration sale is off the cards the only hope remaining for GAME is that a buyer such as GameStop may choose to buy some of its strongest assets, like key stores and facilities.
It would, however, mean an end to The GAME Group as we know it. And possibly the closure of all or some of the world's GAME/Gamestation stores as early as tomorrow morning.
However, it should also be known that rumours about an imminent acquisition at the hands of GameStop continue to circulate, offering staff a glimmer of hope.
MCV will continue to pursue the matter and bring you the latest as and when we can.