Game Group Share Price Hovers on Edge of Abyss
As video UK retailer issues statement...
Record sales of Mass Effect 3 cannot be cheering staff at the GAME Group today. The company, which also owns the GameStation video game retail stores and which did not stock EA's Space Soap sequel, has been forced to issue a trading statement in fact.
MCV reports that the share price in the group feel below 1p this morning.
The thinking prior to the Friday sales triumph of ME3 was that because GAME and GameStation would not be stocking the title, it would sell less well than its predecessors.
It didn't. It outsold both of them.
The company itself has released the following statement:
"Further to GAME's announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3 February 2012, and to meet its revised strategic plan. While these discussions are ongoing, it has not been possible to source new products from a number of suppliers.
"The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.
"It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company.”
Source: Game
MCV reports that the share price in the group feel below 1p this morning.
The thinking prior to the Friday sales triumph of ME3 was that because GAME and GameStation would not be stocking the title, it would sell less well than its predecessors.
It didn't. It outsold both of them.
The company itself has released the following statement:
"Further to GAME's announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3 February 2012, and to meet its revised strategic plan. While these discussions are ongoing, it has not been possible to source new products from a number of suppliers.
"The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.
"It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company.”
Source: Game
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