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Hundreds of jobs on the line as GAME creditors snub rescue plan
by Ben Abbott at 8:28 pm on Monday, 19 March 2012

High street retailer GAME could be facing administration and the loss of hundreds of jobs after its lenders apparently rejected an offer by private equity firm OpCapita to buy off the company’s multi-million pound debt last week.

Owing over £100m to creditors (including the Royal Bank of Scotland) and with a £21m rent payment looming this weekend on the 25th March, the Guardian claims that insiders suggest further talks concerning OpCapita’s rescue bid have not taken place in spite of an RBS spokesman’s claim that negotiations are still under way. Whilst other, unnamed bank source has supposedly indicated that the OpCapita deal was still being considered, things are looking increasingly bleak for GAME considering the £40m it already owes suppliers, an upcoming £12m wage bill and the £10m it owes in deferred VAT.

This news comes hot on the heels of GAME being unable to stock many recent titles - such as Mass Effect 3, FIFA Street and Mario Party 9 - and the firesale taking place in its preowned hardware and software ranges.

Have an opinion on GAME’s situation? Leave a comment below to let us know your thoughts on the subject.

Sources: The Guardian, CVG
- Ben Abbott

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