Game & Gamestation: GAME credit woes

[Dazzyman]

Still don't see any issue tbh, wife was sat holding a pair of 2.5k shoes in Harvey Nicks other week off the shelf . And no she didn't buy em pmsl

[Neon Ignition]

I think in the short term it would be a bad thing for GAME to go under, times are extremely tough in the retail world and GAME represents one of the few prevailent faces for the sector which general consumers can easily see and keep in their minds even if they don't represent good value (not that said consumers are aware of that). In the long term though physical retailers aren't going anywhere despite the online obsessee's protesting and there is no shortage of people wanting a slice of that pie. I'm sure some foreign companies would try and launch here/retry and there are companies like Grainger (again despite some circles complaining about them) who have shown it is possible to see healthy growth even during such conditions and would likely benefit from it. Sure second hand sales woudl increase and be a drain on some publishers but then without it there'd also be a damn sight less new game purchases too as the price barrier simply puts off many gamers altogether. In that long term view it might even be beneficial to not have such a monopolised presence. We'll probably find out soon.

[Cornflakes]

In that long term view it might even be beneficial to not have such a monopolised precense.

I am with you on this.
But I would rather see GAME survive, by selling some of their stores to a competitor like gamestop or someone else. If just one company takes over GAME, that would just mean that we will be back in the same situation again in few years time.
GAME just became too big globally in a short period of time. Kinds of remind me of the banking sector.

[Daragon]

I am with you on this.
But I would rather see GAME survive, by selling some of their stores to a competitor like gamestop or someone else. If just one company takes over GAME, that would just mean that we will be back in the same situation again in few years time.
GAME just became too big globally in a short period of time. Kinds of remind me of the banking sector.

Their bosses share a common greed so you may not be far wrong there!

[Golgo]

While I deplore GAME for the same reasons many have mentioned and I think we deserve a much better high street retailer, I agree that it wouldn't be in anyone's interests to see them go under. Besides, the whole crisis seems to have been brought on by some jittery practises from their main bank (RBS), who think an ?18 million deficit - in a recession FFS - out of a turnover of over ?1.5 billion is a big enough problem to withhold credit guarantees. It's a total over-reaction, in my view, not least given RBS's own ongoing deficit (760 million down this year?). GAME may be ****, but RBS have put them in this position through some questionable and hypocritical business practise.

[Silanda]

They're not just ?18 million down though are they (where are you getting that figure from anyway, their last statement gave an operating loss of around ?50 million)? Their last interim financial report seemed to suggest that they have a lot of debt maturing and have dwindling cash reserves. If they are making losses, do not have significant cash reserves, and the situation is deteriorating, what are they supposed to pay off their loans with? Buttons? The banks have a right to be nervous if they are owed significant amounts of money from a company that is incurring consecutive losses, with no improvement in sight.

[Golgo]

I got 18 million of teh internets somewhere, probably same as you with your 50? Anyway, who has got significant cash reserves to splash around? Surely there were other ways for RBS to respond if they saw a crisis, such as making continued support conditional upon further downsizing to offset overheads, rather than this blanket credit refusal which just stops the business in its tracks?

[Dazzyman]

Stuff like the stock issues will be down to pubs tho not the bank, no cash no stock when there in financial difficulty, too much of a risk for them. They would prob quite happily let them have stock on return if unsold or x amount up front but when they even stop doing that there's more going on than we know about. Pubs will help as much as possible in circumstances like this

[S3M]

Looks like the KO punch for GAME my be coming:

http://www.eurogamer.net/articles/2012-03-07-game-and-gamestation-having-a-firesale-on-pre-owned-stock

Seems there having a fire sale so now is the time to buy!

[wakka]

I've been following this with some interest. It seems to me that GAME group will be bought, probably consolidated, and while some stores will close they will maintain a high street presence. I don't think they'll disappear altogether.

[booth83]

One thing not mentioned, and i don't know if it's in any press, is the fact that the banks halved their overdraft, which historically they dip into at this time of year and get out of at the end of year when sales pick up, resulting in the loss of the ability to buy new games up front without the credit insurance or whatever it is, thus, no new titles sadly, i reckon this massive sale which they've put on is simply to generate some cash to get some new titles in (mass effect etc, better late than never!), most of the titles mentioned in that link are titles that a lot of stores are sitting on tons of stock of just collecting dust in stockrooms, imo a sound business decision from the higher ups, just a shame it's taken this crisis to make them do something not absolutely moronic for a change!

[Flabio]

Story this morning seems to be that Gamestop are only interested in the stores GAME have in Portugal and Spain. Now, selling their EU wing could be enough to actually save the UK stores.

[Daragon]

It could save them, or it could only prolong the inevitable.

Nothing will change unless the fundamental issue which put them in this position to begin with is addressed.

[Family Fry]

Seeing reports that this sale is now including new stock and hardware will be on sale tomorrow.....hmmm.

[Daragon]

Seeing reports that this sale is now including new stock and hardware will be on sale tomorrow.....hmmm.

Hopefully the reports are accurate and GAME will see first hand the positive power of decent and competative pricing! A successful sale should not mean complacency however.