Bye Bye Game!

[Nexus]

It's a difficult one to call.

Whoever takes on the company would be buying a business that currently has debt, a huge amount of stores with likely long rental agreements, wage bills for 10,000 staff (according to MCV).

You then have to also look at their assets, they are trying to sell off all their pre-owned stock to raise capital, however they currently have little in the way of deals anymore with Publishers, so no new games.

I'm not really seeing what's in it for a potential buyer right now.
Gamestop has been the major speculation, they run a similar model to game with pre-owned stock, but aren't in the red. It would largely depend on whether they want to take Game Group's debt and expand more in Europe.

You've suggested Tesco above... who of course could manage that level of debt.
But really I think their major coup would be Game Group's distribution warehouse and an expansion of their own online business with it.

As it stands right now, I think a buyer is more likely going to wait until the administrators have started breaking it up.

 

[3dcandy]

I agree, nobody in their right mind would take it over pre administration. As said everywhere, get in and use your points etc. because they'll be junk in 2 weeks if not before...

 

[gothic_hobbit]

I agree, nobody in their right mind would take it over pre administration. As said everywhere, get in and use your points etc. because they'll be junk in 2 weeks if not before...

Gamestop could be a possibility.

 

[antijoke]

You've suggested Tesco above... who of course could manage that level of debt.
But really I think their major coup would be Game Group's distribution warehouse and an expansion of their own online business with it.

Yep, along with the massive retail estate they have, could be potential there for Tesco to go with the distribution business as well, as well as the possibility of then using the GAME branding in stores., then the points system etc etc.

Not that I think Tesco are eveven interested, but if I were a big wig at Tesco I would look at the numbers.

 

[Strife212]

The value of GAME is so low, the company is only worth around 5 million by share value, a lottery winner could pick that up

It actually seems undervalued to me at the moment. Surely if they get rid of dead weight stores and improve the online side a bit it's a good business.

 

[ps3ud0]

It's inevitable someone else will buy them, they are not just going to disappear over night.

I wouldn't be at all surprised if Tesco bought them.

I look forward to the ASDA locals coming to a town/shopping centre near you . Whose gonna take it on as an ongoing business, when the GAME group as the biggest UK games retailer couldnt?

ps3ud0

 

[JoeBoi]

The value of GAME is so low, the company is only worth around 5 million by share value, a lottery winner could pick that up

It actually seems undervalued to me at the moment. Surely if they get rid of dead weight stores and improve the online side a bit it's a good business.

Surely that'll be investing 5 million in a sinking ship.

 

[jcb33]

Hmm, I have been saving my reward points for a while, I really don't want to spend them if they are going to bounce back and I have to start from scratch...

Jcb33.