Video game retailer GAME is having some much publicised financial issues over in the UK where the company is based. Today a rumour suggests that the company may be aiming to downsize, which would mean cutting off the international arm of the business.
Website MCV cited an un-named source when it reported the rumour. According to their information, investors are planning a rescue package that would mean a radically new way of operation for the company, who also own the stores “GameStation”.
Firstly, according to MCV which again does not reveal where they obtained the information, GAME will enter voluntary administration on Monday, followed by the removal of it’s listing on the stock exchange.
Since the company will effectively cease to exist in it’s usual way, all international arms (except the Spanish chains for some reason) will be “cut off” and will have to sort themselves out. Currently, there are over 115 stores operating in Australia.
GameStation stores will be closed under MCV’s plan, and the European stores will dwindle from over 1400 stores to as few as 300. This, along with some magic, will apparently save the company.
GAME themselves have since emerged to shoot down these rumours sparked by MCV, and it does seem somewhat outlandish. Also, the Australian arm seems to be quite healthy despite competition from EB Games and the other retailers. Indeed I can’t pretend to know the inner workings of GAME from where I’m sitting, but there just doesn’t seem to be an issue with the local business.
We’re thinking that MCV and their invisable sources are probably debunked at this point – however, if they decide to identify their source, our faith might be restored. Of course, this is all supposed to go down on Monday, so either way we wont have to wait long to find out.
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