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Retail

Report: RBS could bring GAME out of administration as early as tomorrow

Report: RBS could bring GAME out of administration as early as tomorrow

Thu 29 Mar 2012 7:39am GMT / 3:39am EDT / 12:39am PDT
RetailRumour

Bank re-emerges as favourite to pick up chain's assets

A report based on insider sources has claimed that GAME's administration woes could end as early as tomorrow: Friday, March 30, with the Royal Bank of Scotland emerging as the favourite to acquire the firms remaining assets.

The rumour, as reported by MCV, indicates that RBS is the most interested and best placed party to complete the deal, with US retailer GameSpot reportedly cooling its position.

Administrator PwC had previously told press that RBS was the likely leader in the ongoing negotiations, which it hoped to result in GAME continuing to operate as an ongoing specialist retail concern.

Following some aggressive downsizing last week, which saw the loss of at least 2,107 jobs and the closure of 277 UK stores, GAME's business is now a more appetising prospect for a buyer.

Whilst OpCapita and GameStop are believed to still be at the negotiating table, it seems increasingly likely that RBS, which is largely publicly owned after it was bailed out of debt itself with tax-payer's money, will be the eventual owner.

More information as we get it.

3 Comments

Private Industry

1,176 182 0.2
Rumor has it that RBS blocked the sale of GAME before it went into administration. If thats true then their practice is very dodgy of first blocking a sale just so they can buy it cheap later.

Posted:2 years ago

#1

John Donnelly Quality Assurance

313 38 0.1
Werner, its possible they blocked it because it would have resulted in a larger loss for the bank.
Remember RBS are the primary creditor to the group.

You may think it was dodgy but without the hard numbers and details we can only speculate on romours about the colapse of the game group.

Either way I dont think the outcome would have been any different, they had too many stores and could not continue as a going concern.

Posted:2 years ago

#2

Private Industry

1,176 182 0.2
The outcome would have been different in that sense that if you sell GAME they are not in administration and you close stores then you don`t get around of the law regarding notice period of contract termination, redundancy payment suspension of loyalty cards, gift cards and getting back the deposit on pre orders.

So instead they blocked it, made sure the company goes into administration and got away with axing plenty of jobs without a notice period and now they can practicaly pick it up for nothing. OpCapita is still making bids and sure they where willing to invest a lot to get GAME before it went into administration. If the administration ends tomorrow and RBS gets what is left of GAME that would look dodgy because it went into administration this week and I find it hard to believe that in such a difficult matter a decision can be made so quickly unless it was already the plan from the start. It all looks very favourable for RBS if they get it, they can pick it for a tiny amount if they even need to pay anything, don`t have to pay any redundancy, stores are already closed so there isn`t that much that needs to be paid. If they don`t run it further into the ground they can keep it a few months praise record earnings for the stores and sell it off for more profit.

The same like all those banks knew GAME would go down since a while and didn`t do anything to stop that earlier and let it come so far. We all said since over a month here they will go down soon and I`m sure the banks where very well aware of the fate. On top of that you want to give a retailer that went down because of mismanagment to a bank that needed billions of ballout because it was mismanaged? That sounds like a great plan. Let`s put the largest oil producer in charge of making electric cars that don`t need oil.

Posted:2 years ago

#3

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