Things have been looking very grim indeed for European retailer GAME over the last few months, all of which culminated in the GAME Group announcing that they will enter administration. However, a white knight has appeared to save the day for GAME. GAME closed 277 stores last week, and a private investment firm, OpCapita, purchased the remaining 333 for a measly £1 ($1.60 USD). In addition, OpCapita promises to provide GAME with "the capital it needs to trade on a normalized basis."
As a result, 3,200 GAME employees will keep their jobs. Most of the head office staff who lost their jobs earlier could be re-employed. However, the 277 stores that GAME closed last week will remain closed.
Henry Jackson, OpCapita's managing partner, is quite confident that this is not the end of GAME.
We are pleased to have reached agreement with the Administrator. We strongly believe there is a place on the high street for a video gaming specialist and GAME is the leading brand in a £2.8 billion market in the UK.
We have assembled a strong team of experienced industry operators to implement the programme of operational change that is needed. 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.
Time will tell if it will indeed turn around, but here's hoping that it will. And while they're at it, hopefully they can smooth over GAME's relationship with EA, Ubisoft, and Nintendo.
[Source]
