Specialist chains Chips is optimistic that the busy Q1 release slate will boost the firm, despite the fact that financial pressures forced it to enter a Company Voluntary Arrangement last month.
Chipsworld entered the CVA after running up significant debts with HMRC, although this only impacts the 11 company-owned stores. The firm’s 18 franchised outlets and website remain unaffected.
We were hoping to avoid the CVA, but we had to go into it in the end. It means we are having to prepare ourselves and trim a few things down,” explained Chips’ joint MD Don McCabe.
The CVA is a really useful tool, which some UK companies seem to ignore. Businesses that go into Chapter 11 in the US often come out the other end.
Last year many companies took some big knocks. And it is about how you react. We are still here and we are still battling, and I intend to be here next year as well.”
Chips is now looking ahead to a busy Q1 sales period, with major new releases including Vancouver 2010, Splinter Cell: Conviction and BioShock 2 hitting shelves following a successful Christmas sales period for the firm.
We had a good Christmas. It was a bit late coming, but about three days before Christmas there was a real rush,” added McCabe.
This continued after Christmas, with Nintendo products selling really well before New Year. I’m now looking forward to a few big game launches.
I expect Q1 to be constant in terms of sales. Bayonetta, Darksiders, Army of Two, Vancouver 2010 and BioShock 2, are looking great. I’m particularly looking forward to Aliens vs Predator.
What is great about these games is the core gaming element. These titles are proper gamers games, which might not interest the supermarkets quite so much.”