UK Game Stores Saved From Complete Annihilation8:48 pm - 04/02/2012
British video game retailer Game is still an ongoing concern, thanks to the efforts (read: money) of private investment firm OpCapita, now the proud owner of the 333 remaining store locations throughout the United Kingdom.
Having been in financial hot water for quite some time, Game's troubles became abundantly clear to customers earlier this year when the retailer's strict penny-pinching procurement terms resulted in major titles such as EA's Mass Effect 3 not making it to store shelves.
On March 21 Game Group announced intentions to go into administration. On March 26 administrators from PricewaterhouseCooper took control of the company, immediately closing 276 of the company's 609 UK locations.
Yesterday investment firm OpCapita stepped up to bat, purchasing the remaining 333 stores for £50 million (around $80 million USD). The move saved the jobs of some 3,200 workers.
"We strongly believe there is a place on the high street for a video gaming specialist and we have assembled a strong team to implement the programme of operational change needed," said OpCapita's managing director Henry Jackson. "There is a huge amount to do but we look forward to the challenge of restoring Game's fortunes in partnership with its employees and suppliers."
Suppliers might be a problem, as the agreement does nothing to assuage the £40 million of debt owned them, while £88 million in loan credit was slashed by 55 percent.
With the UK branches of Game taken care of, PricewaterhouseCooper can now work on determining the final fate of the 1,270 stores located overseas.