Game to call in experts on restructuring
Game Group is poised to hire a restructuring team at Deloitte, the accountancy firm, to deliver a strategic plan for next year to help it turn around its dire performance.
The embattled computer games retailer, which has 610 UK stores, has also spoken to restructuring teams at other firms over recent weeks about improving its deteriorating financial position. But Deloitte appears the front-runner to be hired.
Game – which had debts of £91m as of 31 July – has been hit by the wider consumer downturn. But the retailer is also suffering from tanking demand for its products, despite a boost from new releases, including Call of Duty: Modern Warfare 3.
In November, Game issued its second profits warning in five months, adding that its like-for-like sales this year would be down by at least 7 per cent. The City expects Game to post a loss of £12m for the year to 31 January. Its shares have lost 87.5 per cent of their value this year and closed at a lowly 8.75p yesterday.
Alongside its profit warning last month, Ian Shepherd, the chief executive of Game, insisted it had "outperformed the market", but said it was in "extraordinary economic times". Royal Bank of Scotland is the biggest lender to Game. All parties declined to comment.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
iJobs Money & Business
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...