Game may offload its loss-making overseas division
Thursday 02 February 2012
Game Group has appointed advisers at Rothschild to examine offloading parts of, or its entire, international operation.
The troubled computer games retailer has 663 stores overseas, including in France, Sweden, Norway, Denmark and Australia, but the division made an operating loss of £15.8m in the year to31 January.
It is unclear which parts of Game's overseas business are up for sale. Sources told Retail Week magazine that it is likely the retailer will aim to sell all territories, either piecemeal or in one deal.
Game, which has 610 UK shops, posted another profit warning last month and said it expects to breach certain banking covenant tests on 27 February. On a more positive note, the retailer said it expected to have £120m of cash on its balance sheet for the financial year just ended. Game's share price fell by 0.11p, or 2.1 per cent, to 5.13p yesterday, reflecting the City's long-term concerns over its future.
Underlying sales at Game in the UK and Republic of Ireland fell 15.2 per cent over the eight weeks to 7 January, compared with a decline of 12 per cent over the longer 49 weeks.
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