Insiders have claimed that British retailer GAME may be about to shut its high street stores before it is forced into bankruptcy. The company has recently failed to secure key titles from the likes of EA, Nintendo, and Ubisoft, and there is said to be a “real risk” that its directors will “pull the plug” before insolvency becomes inevitable.
GAME recently failed to secure stock of Mario Party 9, Mass Effect 3, and PS Vita launch titles from Ubisoft, including Rayman Origins, Michael Jackson: The Experience, and Asphalt Injection. It won’t be receiving any of EA’s March release, either, including Tiger Woods 13, FIFA Street, and The Sims 3 Showtime.
A source “close to the situation” has revealed to British tabloid The Daily Express that GAME directors are already in discussions to close the doors, rather than rack up more losses:
“There is a real risk that GAME’s directors will pull the plug because they can’t be sure that the company can survive through the next trading season, and then insolvency becomes inevitable.
“They are in discussions with their legal advisers about whether to shut up shop rather than rack up more losses.”
The lack of Mass Effect 3 could prove to be most damaging for the company. Eurogamer reports that it will cost the company £7 million (approx. $11.08 million) in potential revenue and £2.5 million (approx. $3.69 million) in profit.
GAME’s current issues with EA are said to be “temporary,” and both companies are reportedly working together to ensure they are resolved. However, the retailer’s syndicate of lenders, led by the Royal Bank of Scotland, isn’t convinced, and is said to be running out of patience.
Sources “close to the State-owned bank” told The Express:
“The immediate response from RBS will be to push for more store closures, but the tipping point for the directors and the lending banks will come when the stores don’t have products to sell,” said an “industry source.”
“This could happen if more suppliers follow suit.”
But GAME could yet be saved. U.S. retailer GameStop is believed to be gearing up to make a bid for GAME, particularly its U.K. and Spanish businesses.
Would you be disappointed to see GAME stores closed?