GAME buyer will wait until the retailer enters administration
Analysts have begun speaking up as to the future of GAME, the troubled UK retailer that is currently struggling to find enough money to stock the latest releases (including Mass Effect 3 and Street Fighter x Tekken).
It’s believed that any potential buyer will wait until the company has formally entered administration before an offer is made, meaning an iminent savour is unlikely.
“We suspect that any potential suitor would prefer to wait for a formal administration process,” Singer Capital Markets’ Mark Photiades told the BBC. “Through a pre-pack, the suitor would have much greater flexibility around store liabilities.”
As for who would likely be interested in GAME, US retailer GameStop is the most likely candidate according to analyst Peter Smedley of Charles Stanley Securities.
“Whilst there is a powerful industry rationale for GAME’s survival in the UK – the key video games suppliers see GAME as a vital retail partner – some kind of insolvency process is looking increasingly likely to ensure that GAME is rescued, albeit in a radically different form,” Smedley told Financial Times.
“Whilst other interested parties may well emerge during the mooted sales process, Gamestop is the best positioned financially and strategically to pick up the assets it wants”.
For a very non-analysts opinion on the state of GAME and the possible reasons for their downfall, have a listen of the latest IncGamers Podcast.
Sources: BBC, Financial Times