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Report: UK retailer Game needs to find lenders by this weekend to avoid administration

UK video games retailer Game Group, which reportedly owes more than £180 million ($285.0 million) to creditors, may fall into administration this weekend if it cannot find backers to help raise money to pay rent and wage bills.

Mike Rose, Blogger

March 19, 2012

1 Min Read

UK video games retailer Game Group may fall into administration this weekend if it cannot find backers to help raise enough money to pay rent and wage bills. The troubled retailer has seen a difficult couple of months. It was said to be "reviewing a strategic plan" last month in light of credit issues, and shortly afterwards had apparently struck a new deal with its lenders to allow it to continue operating. However, as big-name publishers such as Electronic Arts revealed that they would not be supplying the chain with high-profile games at launch, it became apparent that the original lender deals had fallen through. The group now has until this weekend to find new lenders, says UK newspaper The Sunday Times and as reported by Press Association, to pay around £33 million ($52.3 million) towards rent payments and staff wages. The company reportedly owes creditors around £180 million ($285.0 million) in total. It also reportedly owes more than £10 million ($15.8 million) in VAT, and £40 million ($63.3 million) to suppliers. The company has stated that it is seeking sources of funding, but as-of-yet has not found a willing party. For the first half of the current fiscal year, Game Group posted losses of £51.5 million ($80.1 million), compared to losses of £21.5 million ($33.5 million) for the same period a year prior.

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