GAME’S efforts to save itself from administration suffered a blow yesterday after a rescue-deal was given the ‘cold-shoulder’ by the firm’s lenders, The Guardian has reported.
It is understood that the company has until March 25 to find a buyer or new backers so it can pay its quarterly rent bill.
If it doesn’t then it is likely it will go into administration.
A ray of hope was cast earlier in the week when it was reported that the owner of Comet, OpCapita, was looking to put together a rescue deal.
But The Guardian has reported that their initial proposals have been met with a lukewarm response by Game’s lenders, who are understood to be owed over £100million.
It reported that the issue had been complicated further by the number of banks involved in the rescue talks, all of whom would need to sign off on the rescue package.
The Royal Bank of Scotland is rumoured to be owed £45m by Game, with the likes of HSBC, Barlcays and La Caixa each owed £30m apiece.
The news is a major blow for the chain, which has a store in Skegness and employs around 6,000 people in the UK.
It had a global turnover of around £1billion last year, but is saddled with large debts.
The troubles also take place at a time when games sales are falling globally, with more and more people choosing to buy games through internet-based suppliers, or playing games which are digital downloads.