Giant may snap 291 Game shops

GameStop, the world's largest video games retailer, has expressed an interest in buying the Iberian operation of troubled Game Group, the Independent has learned.

News of the approach came as it emerged that another supplier was withholding products from Game.

GameStop's interest in all, or parts, of Game's 291-stores operation in Spain and Portugal is a rare piece of good news for the company. Both declined to comment.

But Game, which has 610 UK shops, still faces a battle to safeguard its future. Its shares closed at 4.6p yesterday. The supplier Capcom is refusing to ship its latest games, Street Fighter X Tekken and Asura's Wrath, scheduled for release on Friday, to Game.

This followed the technology giants Electronic Arts and Nintendo pulling products last week over concerns about its creditworthiness.

A Game spokeswoman said: "We're in talks with Capcom to resolve this temporary situation and we apologise to our customers for this disappointing news."

It put its 663-stores overseas operation up for sale by appointing advisers at Rothschild in January.