Trading in Game Group shares suspended as directors say no equity value left ... - Washington Post

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Trading in Game Group shares suspended as directors say no equity value left ... - Washington Post Mar 21st 2012, 08:09 "The board now considers itself to be unable to assess the business's financial position, and is of the opinion that there is no equity value left in the group," the company said following discussions with lenders and a potential third party financier. The Financial Times reported Tuesday that Game, burdened with 100 million pounds ($160 million) in debt, was looking at plans to close half of its 610 British stores. The private equity group OpCapita had tabled an offer to take over Game and its debts, the FT said. Game announced last month that Electronic Arts Ltd. had refused to supply the company with Mass Effect 3, expected to be a big-selling game. Last week, Game said it was talking to suppliers and lenders in pursuit of agreements which would allow the business to continue. It said it was unable to get stock from several suppliers. In the eight weeks to Jan. 7, covering the key Christmas period, Game's sales in stores which were open at least a year were down more than 15 percent in Britain and down nearly that much in its other European shops. In the six months ending July 31, Game reported a net loss of 37.2 million pounds ($59.1 million) on revenue of 559 million pounds. A year earlier, Game's net loss was 15.4 million pounds. Based in Basingstoke, England, Game has 1,300 stores trading under the Game and Gamestation brands including outlets in France, Spain, Portugal, Ireland, Sweden, Norway, Denmark, the Czech Republicana and Australia. The takeover of Gamestation and its 217 U.K. stores in 2007 left Game with a bloated portfolio of shops, with Game and Gamestation stores competing in some markets. Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers. Five Filters recommends: Donate to Wikileaks.

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