A last minute deal from private equity firm OpCapita has saved the trouble GAME UK shops from closing. Last week the troubled GAME stores slipped in to administration and looked to be completely closing as no buyers had been found to help revive the troubled company.
Now the new deal with private equity firm OpCapita will save 333 shops run by the computer games chain, saving around 3,100 jobs. No sale price details about the deal have been disclosed by either side but OpCapita will accept the £85m of debt owed by GAME to a syndicate of banks led by RBS.
The debit includes £12m wage bill which was due by the end of March, together with £21m rent, £10m in VAT and £40m owed to suppliers still outstanding. Henry Jackson, managing partner of OpCapita explains:
“We strongly believe there is a place on the high street for a video gaming specialist and Game is the leading brand in a £2.8bn market in the UK. We have assembled a strong team of experienced industry operators to implement the programme of operational change that is needed. There is a huge amount to do but we look forward to the challenge of restoring Game’s fortunes in partnership with its employees and suppliers.”
Source: Sky News