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OpCapita Offers To Buy Out GAME Lenders

And we're safe. Right?

The Times (via MCV) is reporting that OpCapita are offering to buy out GAME’s lenders, effectively – if we understand this correctly – writing off a good chunk of the recent bad news.

The offer would also include paying any outstanding payments owed to suppliers.

GAME haven’t made any official statement on the offer, but share prices have started to rise over the day, and are currently around 70% higher than they were this morning.

“OpCaptia sic, which bought Comet for £2, has offered to buy out Game Group’s lenders in a move that offers a lifeline to the struggling retailer,” says the paper, calling it a ‘rescue plan’.

The deal from OpCapita would certainly make a formal deal from the likes of Walmart (or GameStop) more enticing for them.  Hopes are high, then, for the 6,000 staff currently employed.

Note that this isn’t automatically saving GAME, or buying out the retailer – see: Comet.

Update: MCV has a quote directly from the horse’s mouth, so to speak. Game Group issued a statement which said:

The Board of GAME confirm that a third party has shown interest in providing additional funding for the company. The third party is seeking a dialogue with the Group’s current lenders, however there is no certainty to the outcome. At the same time, the Board remains in its own discussions with its current lenders as it continues to conduct a review of its business and assets
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.

Source: The Times.

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15 Comments
  1. HoboCastro
    Member
    Since: Mar 2010

    They must have some insanely good accounts to get through the books this quickly.

    Comment posted on 14/03/2012 at 16:37.
  2. Awayze
    Member
    Since: Jul 2010

    I don’t understand how Comet was bought for £2…….

    Comment posted on 14/03/2012 at 16:57.
    • bmg_123
      Member
      Since: Feb 2012

      They bought it for £2, but inherited any debts that the company had. Same with Harmonix, it was bought for, I think $1, but then more debt was inherited.

      Comment posted on 14/03/2012 at 17:02.
    • Forrest_01
      Member
      Since: Jun 2009

      It explains in the linked article – Whilst it was picked up for pennies (200 of them to be exact), around £50m still had to be pumped into the business.

      “But the parent company was forced to pump £50m into the loss-making UK electricals chain and retain its pension liabilities to get rid of Comet.”

      Comment posted on 14/03/2012 at 17:04.
  3. Darksidesystems
    Member
    Since: Aug 2010

    Please don’t be bought out by Gamestop… I hear they are absolute nazis to be employed by

    Comment posted on 14/03/2012 at 17:07.
  4. cc_star
    Team TSA: Writer
    Since: Forever

    As the offer including covering GAME Group’s debts they probably want to get this done quickly, but with other parties interested it will probably draw them out of the woodwork to make rival bids too.

    Anyone who bought shares when everyone was dumping them yesterday or today before this news is laughing.

    And for all the criticism or laughs about GAME’s plight, they still took over a billion through their tills last year and have 19m reward card customers, a company who makes the correct decision in the boardroom could make a shit-ton as they turn it around.

    Also Comet is very keen on customers playing with products in their stores, something that’s been missing from gaming retail for far too long.

    Comment posted on 14/03/2012 at 17:16.
    • Forrest_01
      Member
      Since: Jun 2009

      Apparently not too keen on customers playing with themselves in their stores though.

      I used to be a frequent customer before that.

      Comment posted on 14/03/2012 at 17:22.
    • gaffers101
      Member
      Since: Oct 2008

      If Comet (or Walmart) do take over Game I’d love to see more try-before-you-buy consoles and new releases available, it would certainly create more of a buzz in the stores.

      Comment posted on 14/03/2012 at 18:03.
  5. An-dz
    Member
    Since: Oct 2010

    I remember when woolworths was going out of buissness they were going to sell the company for 1p, sadly no one bailed them out and saved woolworths :(

    Comment posted on 14/03/2012 at 17:32.
    • Forrest_01
      Member
      Since: Jun 2009

      It’s true & it was sad to see such a prominent high street name disappear into the bowels of obscurity.

      I really don’t want the same thing to happen with Game/Gamestation if it can be avoided. Especially as they are more of a niche chain than woolworths ever were.

      Comment posted on 14/03/2012 at 17:34.
  6. Foxhound_Solid
    Is a smart cookie.
    Since: Dec 2009

    Im surprised!

    Comment posted on 14/03/2012 at 19:31.
  7. rossthebassist
    Member
    Since: Nov 2009

    I personally want gamestation to be sold seperatly, to have a competing specialist!

    Comment posted on 14/03/2012 at 22:11.
  8. Smallville2106
    Member
    Since: Feb 2011

    Fingers crossed that they will be saved and will get their asses in gear.

    Comment posted on 15/03/2012 at 00:09.
  9. EdwardT
    Member
    Since: May 2012

    Game have hacked off a lot of people down through the years, the extensive discounting requests are the straw which appears to have broken the camels back on that front. Not saying much but Game haven’t really been massively supportive of certain suppliers, publishers or products down through the years – you know the old saying, be careful who you kick on the way up! Trouble is the likes of EA & Activision don’t “need” Game – their key products would frankly sell from Specsavers if they wanted to supply them, individual retailers even the size of Game are unimportant when you’re talking about the likes of FIFA, Tiger Woods, Call of Duty, World of Warcraft!
    Edward from [don’t post links, please]

    Comment posted on 08/05/2012 at 10:07.

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