Troubled retailer Game Group says it is in discussions with banks concerning its financial woes, and may sell its overseas business in order to stay afloat.
Yesterday it emerged that the UK's biggest specialist videogame retailer was struggling to source new stock after it lost its credit insurance from agencies, meaning it would have to pay for new stock in advance. The company insisted this week's new releases would be on shelves on Friday as normal, and admitted it was working on deals with suppliers to ensure it was able to stock new games in future.
In a statement, the retailer said: "In response to press speculation, the Game Group PLC confirms that it is in ongoing dialogue with its lending syndicate to reach agreement on revised terms for its facilities.
"As part of these discussions, the lending syndicate is reviewing a strategic plan of the company which includes a review of its overseas operations. A further announcement will be provided once discussions have concluded."
While the bulk of Game's business is in the UK, there are clear cost-saving opportunities to be had in streamlining its overseas business. The company has 197 stores in France, 288 across Spain and Portugal, 94 in Australia and 67 in Scandinavia.