Published on March 19th, 2012 | by Mark0
UK Retailer close to administration, which could affect pre orders of Max Payne 3
GAME Group is said to be teetering on the brink of collapse after the retailer’s lenders – who are owed more than £100 million - reportedly rejected a rescue deal proposed by private equity firm OpCapita.
The specialist retailer, which has been the subject of multiple doomsday reports over the past few weeks, reportedly has a £21m rent payment due on Sunday, more than £10m owed in deferred VAT, £40m owed to video game suppliers and a £12m wage bill shortly requiring payment.
Any potential investor in the company would have to pay the firm’s six banks – including Royal Bank of Scotland – £100m, as well as the above mentioned debt, reports MCV.
In recent weeks GAME has lost the support of Nintendo, EA, Sega, Capcom, Tecmo Koei, Microsoft and Activision, meaning it hasn’t been able to offer recent releases such as Mass Effect 3, Street Fighter X Tekken and FIFA Street, and won’t be stocking upcoming games including Resident Evil: Operation Raccoon City and Kinect Star Wars.
The retailer said in a statement last week: “The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.
“It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company.”
Therefore any gamers that have pre ordered games from the company, including Max Payne 3 and Grand Theft Auto V, you may want to switch retailer to keep your pre orders. If you want the special edition of Max Payne 3 you must secure the pre order from a retailer that offers it before April 2nd.
Remember to keep away from GAME’s other UK store, GameStation.