British video games retailer Game has not been given new titles by suppliers, and the company has recently positioned itself in a rather awkward place – that is, on the corporate shopping shelves. This would definitely send a warning to those shareholders, as their equity in the firm might eventually end up as nothing but a piece of paper. Game currently has around 1,270 stores in nine European markets and Australia, and have 10,000 folks on their payroll, saw its share price plunge by a whopping 71% earlier this morning after the firm informed investors, “It is uncertain whether any of the solutions currently being explored by the board will be successful or will result in any value being attributed to the shares of the company.”
The main competition of Game would be Internet merchants as well as supermarkets, as new blockbuster titles are sold as loss leaders, which definitely puts Game in a difficult position. Not only that, the challenge is increased as they need to fork out their quarterly rent bill in a fortnight’s time. Should they fail to oblige that requirement, it might just be the straw that broke the camel’s back, sending Game into administration.
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