“Five or six” firms keen on Game Group buyout
A number of companies are being linked with a buyout of Game Group after the nation's largest specialist videogame retailer filed for administration yesterday.
Retail Week (via MCV) reports that "five or six" companies are circling Game, which put itself into administration, giving it ten days to keep creditors at bay while it finds a buyer. GameStop, the US retail chain which has been linked with a buyout of Game for some months, is keen, but will not be drawn into a bidding war.
A further 20 companies, meanwhile, are keen on Game's international assets, especially its Iberian operation; it has 291 stores in Spain and Portugal, and little in the way of competition. Other interested parties include retail salvage specialist Hilco and private equity firm OpCapita, which last week offered to buy Game's debt from its lenders.
The offer, however, was turned down, with the Royal Bank Of Scotland – to which Game owes a reported £45 million – along with Barclays and HSBC apparently more interested in "minimising the size of their haircut" than safeguarding the retailer's future by accepting less than they are owed.