Video game retailer Gameplay seeks buyer

Gameplay, the unprofitable video games retailer, is in talks with potential buyers and has appointed Commerzbank Securities, the investment bank, to help conduct a strategic review of the business

Gameplay, the unprofitable video games retailer, is in talks with potential buyers and has appointed Commerzbank Securities, the investment bank, to help conduct a strategic review of the business.

The company's announcement yesterday was made two months after Gameplay, formerly Gameplay.com, said it would cut 275 jobs and close its eight UK stores to move the group toward profitability. The company said: "Since the restructuring announced on 2 February, a number of informal discussions have developed."

The talks relate to the boxed-games division, which sells hard copies of games to customers through various sales channels, and the technology division, which is developing ways to stream content directly to players via broadband technology.

Potential buyers of all or part of the business were thought to include Cisco Systems, the US computer giant. Existing investors in Gameplay include Dixons, BT and a division of BskyB. The boxed unit is valued by analysts at about £40m, while the price of the remaining unit is harder to estimate.

Gameplay's cash reserves are thought to be just under £20m.