Game warns it could be game over

Reuters News
Posted: Mar 12, 2012 3:53 AM
Game warns it could be game over

LONDON (Reuters) - British video games retailer Game <GMG.L> warned shareholders their equity in the firm could be worthless as it struggles to source new products from suppliers.

The group, which trades from about 1,270 stores in nine European markets and Australia, said on Monday it remained in talks with suppliers and lenders in relation to terms of trade that allow it to operate within a banking facility agreed last month.

Game said it was working to resolve the supply 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 said.

But it warned investors: "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."

Shares in Game, which have lost 94 percent of their value over the last year, closed Friday at 3.51 pence, valuing the business at 12.2 million pounds ($19.2 million)

Yesterday's Sunday Times said failure to pay a quarterly rent bill due in a fortnight could push Game into administration. ($1 = 0.6372 British pounds)

(Reporting by James Davey; editing by Kate Holton)