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GAME Issues Statement As Shareholders Warned Equity Is "Worthless"

More trouble ahead.

GAME has issued a statement this morning as Reuters says the group has warned shareholders their equity in the firm could be “worthless”.

“Further to GAME’s announcement of 29th February 2012 and recent press speculation,” the press release says, “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,” it continued, suggesting more stocking issues.

“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.”

Shares in GAME have lost 94% of their value over the last twelve months.

Once again our hearts go out to the staff affected by all this.

  1. tonycawley
    Pint! Pint!
    Since: Feb 2009

    Still think now is a great time to buy shares. I can see an American company buying them out and reversing their fortunes. Could lose a couple of hundred pounds if they go bust, could make a couple of grand if they turn it around with new owners.

    Comment posted on 12/03/2012 at 08:51.
    • colmshan1990
      Since: Apr 2009

      Stick to horses.
      At least that gambling method is a lot easier to understand. :P

      Comment posted on 12/03/2012 at 09:00.
    • SH Number 7
      Since: May 2011

      Me and my friends are looking at this now.

      Comment posted on 12/03/2012 at 09:16.
    • Mike
      Since: Oct 2008

      You can buy the entire stock for a mere £6 mil. Wanna go halves? :P

      Comment posted on 12/03/2012 at 09:36.
    • Mike
      Since: Oct 2008

      Actually as of time of writing its market cap is £3.79 million. Within a few days it could be worthless…

      Comment posted on 12/03/2012 at 09:48.
      • gaffers101
        Since: Oct 2008

        Investing a couple of hundred could be well worth it if you’ve got the capital to spare, although it does feel like your taking advantage of their misfortune.

        Comment posted on 12/03/2012 at 11:16.
  2. Scythegpd
    Since: Jul 2010

    I wonder if the board members are taking pay cuts on their undoubtably obscene pay packages to assist the company in these trying times. Oh wait, what the hell am I thinking!?!?

    And the worst of it? The 10k or so unskilled workers in the stores will be abandoned to the dole queue ad the unemployment statistics whilst the board members inevitably get a golden goodbye and then some other luctrative position at another company despite the fact that it was their policies, business practices and inability to adapt a changing market that consigned Game to the doldrums in the first place.

    Comment posted on 12/03/2012 at 09:18.
  3. Roynaldo
    Since: Nov 2008

    Feel sorry for the poor f**kers that work in those stores. Hoping that the holes left in the shopping centres are filled quickly to provide jobs for those that were lost.

    Comment posted on 12/03/2012 at 10:03.
  4. humanfish
    Since: Forever

    These directors should be highlighted, perhaps TheSixthAxis could do an indepth piece on them and their mismanagement. It is a difficult line to tread, between incitement and creating an air of lynching, but their corporate incompetence should have the spotlight shone on them, personally. As the post above says, there are going to be alot of reletively unskilled people dumped because of this. I hope many stores can come back as indies or perhaps band together as a new smaller group, maybe a cooperative of new indies.

    Comment posted on 12/03/2012 at 10:04.
  5. Sad Panda
    Since: May 2010

    Was in my local game yesterday and the staff were spot on. This store has finally got its customer service side right and it’s gutting to see it go.

    Picked up the collectors edition of Star Wars old republic, new and sealed for less than £50. I was over the moon, the statue inside is worth that.

    Comment posted on 12/03/2012 at 10:34.
  6. Smallville2106
    Since: Feb 2011

    Feel sorry for the workers.

    Comment posted on 12/03/2012 at 11:21.
  7. wonkey-willy
    Since: Jan 2010

    throw in 4 cans of special bre and i’ll ave’ it

    Comment posted on 12/03/2012 at 12:10.
  8. wonkey-willy
    Since: Jan 2010

    shitty works keyboard!!

    Comment posted on 12/03/2012 at 12:11.
  9. lotrek
    Since: Feb 2012

    If I had any money to spend I definitely get some shares, they can’t get any worse and the only way is up.

    Comment posted on 12/03/2012 at 12:36.

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