EA UK boss: 'GAME will rise from the flames'
In a last ditch attempt to prevent administration the company has apparently opened itself up for sale hoping to find capital that could keep the company afloat
Speaking at the Westminster Media Forum EA's UK boss Keith Ramsdale has spoken out in support of GAME after it was revealed that the company has gone into administration.
After weeks of speculation the company this week declared that it would be going into administration after it was decided to take the company off of the stock market.
Speaking at a media forum the EA boss pointed out that despite their recent credit issues with GAME the UK boss does support the company and hopes to see them be reborn.
"I do hope and believe there will be a phoenix rising from the flames. GAME is full of good people, it's a good store, I just think they need a different approach and I'll think they'll have one,"
"Would I rather there is a GAME? Absolutely I would, I believe that a specialist retailer does a lot for this industry. One of the opportunities for a specialist is to be much more multiform."
Game puts itself up for sale in last ditch bid
Just a few weeks before the company declared it would be going into administration it was reported that GAME Group Ltd would put itself up for sale in an attempt to prevent such an occurence.
Apparently the struggling firm have hired Rothschild to find a buyer after it was reported that Game's shares had dropped to 1p, a staggering drop when you consider that in 2008 the company was worth 300p per share.
Game holds Fire Sale in bid to raise profits?
Game has started its 'Spring Clean' sale online with thousands of prices dropped across the site including Xbox 360 titles as low as £2.98 while a PS3 with Assassin's Creed: Revelations is selling for £99.98.
The sale has already reached social media with Twitter users posting pictures of the games they were able to pick up. One user even discovered that Game was selling a brand-new PS3 with Assassin's Creed: Revelations for £99.98 questioning if it was a mis-price.
Twitter user @Strident also discovered a Gamestation that was offering £35 for people who wanted to trade in their copies of Mass Effect 3.
Game bosses unsure if store will last the year..
Several weeks before it was revealed that adminstration was the only option Game bosses were apparently considering store closures following genuine concerns that the company would be unable to continue trading next year.
Sources 'close to the situation' told The Express that bosses felt there was a 'real risk' that Game was heading towards insolvency and were in consultation with legal advisors over the best course of action.
"There is a real risk that GAME's directors will pull the plug because they can't be sure that the company can survive through the next trading season, and then insolvency becomes inevitable."
Its main backer The Royal Bank of Scotland could also be looking for a way out with sources close to the bank revealing its own concerns over Game Groups current financial situation.
"The immediate response from RBS will be to push for more store closures, but the tipping point for the directors and the lending banks will come when the stores don't have products to sell,"
This comes following the recent announcement by Game that the store would not be stocking any EA Games titles through March including Mass Effect 3.
This was because they had been unable to reach an agreement regarding credit with EA Games which has resulted in a decision which some are suggesting will cost the store £2.5 million.