GAME Group Moves to Quell Damaging Stock Speculation

The Game Group has moved quickly to put and end to damaging rumours of lost credit insurance, withholding of staff pay and lack of new release stock at its GAME and Gamestation video game retailer shops.

The rumours began in a story published by Nowgamer, and based on a single source who told the website:

"'lost credit assurance (sic) with most of its publishers,' meaning it won't be given stock of upcoming game releases..."

Escalating the tale, the anonymous, single source also explained that, "speculation within the company that staff's wages will be withheld in an attempt to boost the retailer's year end figures in March, with a press release set to outline the company's stance."

Both of these items could, of course, lead to a massive downturn in investor and supplier confidence given the fears that still exist in retail following the collapse of Woolworths.

So, Game has rushed to add fact to the story, with Simon Soffe, Communications Director for Game Group, stating that "all staff pay is up to date as of yesterday".

He also pointed out that, "this week's new releases, such as Final Fantasy XIII-2, Metal Gear Solid HD Collection and SoulCalibur V are currently moving through Game's distribution centres for launch on Friday."

On the credit insurance front - possibly most damaging in the minds of investors - MCV reports that, "GAME is facing challenges regarding its credit insurance and that its financial landscape has changed significantly since the beginning of the year."

That said, the company is apparently reworking some of its relationships with individual publishers "to find answers to the financing problems."

Mr Soffe for his part states that the industry "has been supportive" and that "credit insurance is an option for publishers."

In short then:

* Staff have been paid.
* New releases will be in Game and GameStation on Friday.
* Game Group is working with publishers on an individual basis.

Sources:
Nowgamer
MCV