OpCapita Deal On Hold As GAME Have “One Week” To Find £180m

Despite saying I’d probably not bother covering any more of this GAME story unless something actually happens of note, it’s a Sunday, I’ve got fifteen minutes and the front page is quiet.

So, after MCV’s slight faux pas with their latest front cover, what’s been happening? Well, the deal with OpCapita, whilst still technically on the table, has ground down a little. This is presumably because GAME think something better will come along in the next few days, and negotiations have paused whilst all this rumbles on.

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The deal hasn’t been rejected, at all.

More importantly, though, whilst GAME are deliberating, time moves on, and that quarterly rent is due this Friday, according to the Sunday Times today. This is rumoured to be around £21m, but there’s also a £12m salary run just after and there’s also £10m in VAT and – crucially – £40m to suppliers.

Any investor, claims MCV, would also have to find $100m to pay off the company’s six banks, which include RBS.

I went into a few GAME and GameStation stores last week, and the picture was grim.  The physical stock was minimal, especially in terms of new titles (with many publishers not supplying their latest games) and most of the racking and displays were either empty or completely missing from the shop floor.  It wasn’t a pretty picture.

6,000 jobs are in the balance then, this week, as the days count down to what most assume will end in administration.  We only wish the best for those affected.

It was a year ago that Kris predicted a story very similar to this, and reading back on my thoughts from the beginning of February shows just how much of the optimism has quickly seeped from the ongoing saga.  This has all been very swift, but let’s keep our fingers crossed for a happy ending.

There’s still a chance, right?

Right?

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15 Comments

  1. EA, Nintendo, Capcom & SEGA have obviously taken steps to reduce their exposure to losing even more money by no longer supplying new titles.

    Sony on the face of it stand to lose a lot, if GAME can’t find the money to pay the taxman, the rents & payroll then Sony could have effectively paid for all the Vita’s & games that people purchased from GAME, but they obviously took the business decision that they couldn’t launch a console without a presence in Europes largest retailer, even if it meant ‘giving’ them away.

    I’m still broadly expecting that now a bid has been made, it should force other people’s hands, but the more & more dire the situation gets the better the bargain for a potential buyer… and yes, that unfortunately (for people who are money) includes administration.

    • *(for people who are owed money)

    • To Sony it more important that Vita stock was sold. Yes they wouldn’t like the fact they dont get cash but the first month sales are so important. Those sales help so much with future sales, owners are best promotional tool ever. You could easy spend £10 Million on 30 seconds TV add’s and still never achive the same effect which owners of the Vita can do.

      If dont think it that important they why do you think they show Moives in various cinemas for FREE week before going general release to paying customers? Do realy think a week latter these people go to cinema a pay to see that moive again?

      Why do think Sony do Access Events for?

      • Yeah, I know. That’s exactly why I said
        “they obviously took the business decision that they couldn’t launch a console without a presence in Europes largest retailer, even if it meant ‘giving’ them away.”

      • they have owned buy Sony Europe stickers on them so it is probably going into a Sony account.

      • by derp

  2. 180 million in 5 days? hmm, get a loan, :)

  3. They could try trading in their shops and use that cash towards the £180million. :p

    Game are fecked as i doubt that they can get £180million within a week and if they reject the offer. Just let Opcapita buy you out, Game as i don’t see any other option on the table.

    Plus, i think the must have more then 1 store per city policy of their has finally bite them in the arse.

  4. I think that with the OpCapita bid on the table, things are likely to be OK… Just… By the skin of their teeth.

    The banks that have money owed don’t want to lose that money, and I think they’d be likely to extend the deadline by a few days if a deal gets closer to completion with terms that they can accept. They won’t really want to let Game go to the wall, because they won’t get anywhere near what they’re owed if they do.

  5. They should go to quick quid.

  6. I really do feel sorry for the staff. I popped into GAME last week and got talking to some of them. They were trying to be optimistic but you can tell is was just a brave face

  7. They don’t actually need to come up with all that money. Banks and creditors are not stupid (most atleast), and if Game, or a buyer, offers a way they will get more than if it ends in bankruptcy then they are likely to take that deal. Even if the bank gets less than it’s owed they’ll be better off.

    I’m betting there is a lot of negotiating going on around this behind the curtains.

    • Exactly, what are they going to do… turn down x% of the money, force them in to administration and risk getting absolutely nothing?

  8. I think they’ll strike a deal in the dying minutes

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