Trouble on the UK high street
Computer games and hardware retailer GAME admitted that it is being cut-off from suppliers due to its precarious financial situation.
The retailer firm responded to mounting speculation today that it had been unable to secure vital products from its supply chain. GAME has recently admitted to being unable to secure supply products such as hit title Mass Effect 3.
It had previously come to light that that the high street retailer had been struggling to secure a loan following poor sales over the festive period, as many high street retailers struggled with competition from online sales. This has led to concerns over its ability to pay rent on its stores worldwide.
The firm declared it will now be reviewing the position of “all of its assets in the UK and international territories”.
GAME Group confirmed in a statement that it is now in discussions with suppliers and lenders in a bid to continue operating, as it seeks “alternative sources to funding”.
The outlook for the firm, which previously announced that notched up a pre−tax loss of £18 million up to the end of January, is uncertain, with little indication that strategies currently being explored will be successful.
Board members declared in a statement this morning that the Group will do everything it can to resolve problems.
With the continued increase in online shopping many high street stores are struggling, particularly following a poor Christmas. GAME’s shares plummeted on the announcement by 70 percent.