According to The Sunday Times GAME will enter administration at the end of this week unless it pays £180 million pounds to its creditors.
The company reportedly owes £21 million rent payments on Sunday, more than £10 million in deferred VAT, £40 million to video game suppliers and a £12 million pound wage bill to pay at the end of this week. Any potential invester will also have to pay the companies six banks including £100 million to the Royal Bank of Scotland.
Last week US giant Walmart tabled a bid to buy the troubled company along with private investment group OpCapita. The company has recently lost support from all major publishers like Nintendo, EA, Activision, Sega and Capcom, meaning they have not socked this years major releases like Mass Effect 3 and this weeks big release of Resident Evil: Operation Raccoon City (review coming soon!).
The company released this statement last week:
“The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.
“It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company.”
With GAME being on the brink of administration the UK (the worlds second largest video game market) will be left without a specialist retailer and customers will only be able to purchased the latest titles through online companies like Amazon, Shopto.net and Play.com.
We will bring you the latest news as soon as we have it.