It appears that GAME’s chief lenders have thrust the retailer back toward the brink of administration by rejecting the offer tabled by Comet owner OpCapita.
The Guardian reports that OpCapita’s plan to settle debts with chief lenders such as The Royal Bank of Scotland, as well as 40m worth of supplier debts, has not convinced lenders, who have rejected the proposals.
An spokesperson for RBS, which itself is also owed 45m, said negotiations are at least ongoing, keeping hopes of an agreement alive for the time being. However, it is reported that no further talks have as of yet taken place since the initial deal was rejected.
Barclays and HSBC are amongst several lenders believed to be owed around 30m each.
The Guardian also reports that GAME’s insistence on discounts from suppliers was the reason why the likes of EA and Nintendo have walked away from the retailer altogether, clearly believing that other retailers can pick up the slack left by GAME’s empty shelves.
We now turn to the likes of Walmart, whom we know has shown interest but as of yet is not understood to have tabled an offer. And what of GameStop, which has remained silent throughout?
Having rebounded over the last 48 hours, GAME’s share price dipped again today and came close to falling back below 3p.
Although lenders will of course always be cautious, haste must now be exercised with GAME due to pay a large rent bill next weekend. If no deal is agreed by then the retailer will almost certainly slip into administration.