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Cash-strapped Game gets bank lifeline
Struggling computer games retailer Game has been handed a lifeline after its lenders agreed to revise the firm’s banking facilities.
Shares jumped 40 per cent yesterday as the company, which experienced poor trading over Christmas, said it would be able to continue to trade.
However, it is expected to have to downsize its operations, possibly through the sale of its international operations, after the banks insisted on a lower level of borrowings going forward.
The company is now working on an updated strategic plan for review by its banks and which will cover all aspects of the business.
Chief executive Ian Shepherd said: “We’re pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work required to deliver our strategic plan.”
The company, which has 1,300 stores trading under the Game and Gamestation brands, fuelled fears over its future when it said it will not meet a banking covenant – a promise made to creditors to secure a loan – when it is tested at the end of February.
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Wednesday 23 May 2012
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