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After a torrid few months for video games retailer GAME, which is currently holding fire sales on its website and in stores, the firm’s stock value has fallen to an all-time low of 0.5p.
The market closed on Friday evening with GAME stock at 3.51p, but opened today at 1.75p. Since then it has fallen even further to 0.5p, before recovering slightly to 1.21p.
Back on May 16, 2008 – during a lucrative period for gaming – GAME stock would have cost you 296.75p.
The Sunday Times (via MCV) reports that GAME has hired Rothschild, one of the world’s largest independent financial advisory groups, to find a buyer. The paper stated that GAME will have to pay landlords in two weeks – failure to do so could result in the firm entering into administration, costing thousands of jobs.
A statement issued by GAME today reads: “Further to GAME’s announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3 February 2012, and to meet its revised strategic plan. While these discussions are ongoing, it has not been possible to source new products from a number of suppliers.
“The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.
“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.”
It’s now believed that the best situation for the retailer is a buyout from the likes of GameStop. Alternatively GAME could enter into administration, with someone like GameStop then stepping in to buy some of the business, keeping many of its stores open and staff in jobs. If a buyer can’t be found it could spell the end for GAME and gamestation altogether.
Via MCV
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