COMPUTER game retailer Game has conceded defeat in its survival battle after failing to raise new funding.
Game, which has stores in Cascades and Commercial Road, Portsmouth, pictured, and one in Fareham, was reportedly battling to raise £180m this week but said it intends to appoint administrators as rescue talks had not progressed.
Now some 6,000 jobs across its 600 stores in the UK are in jeopardy.
The group says it intends to appoint administrators in the coming days but will continue to trade in the short term as discussions with its banks and other potential funders continue.
It has been reported that Game faces a £21m rent payment due on Sunday and a £12m wage bill at the end of the month. It reportedly owes more than £10m in VAT and £40m to suppliers. A new investor would have to pay up to £100m to Game’s banks.
In a statement, the group said: ‘The board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business.’
Game has suffered dire trading in recent months, which has forced it to ask suppliers for more generous trading terms. But some of them have instead stopped supplying it with new releases, such as Mass Effect 3 and Street Fighter X Tekken, leaving fans disappointed and adding to the group’s trading woes.
It is understood one of Game’s main lenders, taxpayer-backed Royal Bank of Scotland, objected to the terms of a rescue deal with private equity firm OpCapita, which recently bought electrical goods retailer Comet.