It is no secret that Game Group has been finding it difficult recently with some of its suppliers unable to supply as they have had credit insurance withdrawn. This is what happened to Woolworths before it went into administration. The rent for the March Quarter is due in a couple of weeks and if it fails to refinance or be sold then the chain of computer game stores may be forced into administration.
The company has launched a sale of pre-owned hardware and software over the past few days, which some referred to as a ‘firesale’, although a ‘raise-quick-cash-to-pay-the-landlord-sale’ might be more apt.
Following a statement by the company this morning saying that they have not been able to source new products from suppliers the shares fell 73.8 per cent to 0.92p in early London trading.
They went on to say "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."
Sounds pretty serious for Game Group and it looks like the looming March Quarter Day could be the critical point
Game Group has over 1,274 stores worldwide.
Blogged by Robert Moore