GAME told to raise £180 million to avoid administration

Game Group has been given one week to raise £180 million and avoid falling into administration.

The Press Association reports that Game Group owes £21m for rent, £12m for wages, £10m in VAT and £40m to suppliers. As well as this, any new investor would need to pay £100m into GAME’s banks. Failure to do this will result in GAME falling into administration, resulting in the closure of 1,300 stores and the loss of 10,000 jobs.

Walmart, GameStop and OpCapita are all supposedly interested in investing in Game Group, with OpCapita actually having a seemingly unsuccessful move to try and secure a deal.

The games retailer has seen its fortunes turn for the worse after failing to stock big titles such as Mass Effect 3, FIFA Street and Street Fighter X Tekken, and after failing to agree terms with publishers.