HIGH STREET RETAILER Game is struggling and has warned its shareholders to brace themselves for possible changes.
The firm had a tough Christmas season, and recently has had to face up to the fact that it is not in a position to stock hot titles, including Mass Effect 3 from blockbuster publisher Electronic Arts.
"We currently have a supply issue with regards to Mass Effect 3, which means that Game and gamestation will not be able to fulfil orders for Mass Effect 3 at this time. We want to give customers as much notice about this as possible and provide them with a range of options ahead of launch," said the firm earlier this month to the INQUIRER.
"We appreciate that this is disappointing for our customers, and we apologise sincerely for the inconvenience that this will cause."
That seemingly casual statement about one title from one company belied other problems, and now the firm has come out and warned its investors that things are not all that great.
At present the Game.co.uk web site is down for maintenance, but the wider Game Group web site is up. There in a statement the firm confesses to a number of problems with its business, starting with its inability to source software titles from suppliers.
"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," it said.
"While these discussions are ongoing, it has not been possible to source new products from a number of suppliers."
Game's board is working on ways to resolve these issues, such as finding alternative sources of funding. However, other alternatives are more drastic.
"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 added.
"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." µ
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