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GAME administration talk: RBS 'files offer', takeover talks collapse?

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GAME store on Oxford Street, London

© PA Images

GAME's future has been the subject of speculation in today's newspapers.

With the company filing for administration last Wednesday (March 21), it was thought that stores might close this weekend.

The Sunday Times has now reported that the Royal Bank of Scotland, which stalled over takeover talks earlier this week, intends to buy GAME. The bank, leading a consortium, apparently plans to purchase the business once it has gone into administration, allowing it to be restructured.

However, The Express claims that talks to save GAME have collapsed, writing that its closure will be "the biggest retailing failure since Woolworths".

"GAME is likely to go into administration on Monday and the process of selling its assets will begin but this won't be a pre-pack, where a company is bought immediately out of administration," a source said.

"There was contact between the banks and OpCapita late on Friday [March 23] in the hope of reviving some sort of deal. The banks felt that selling GAME out of administration would leave them facing a colossal write-down on what they invested.

"But, in the end, they decided there wasn't enough value in what OpCapita were offering. It wasn't anywhere near 100p in the pound," the insider added.

> GAME days away from possible closure: What do you think?
> Everything Must Go: Is this the death of games retail? - Feature

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