GAME in the UK has had a tough few months, but things are about to get tougher. The retailer needs to raise £180 million (approximately $269 million) in a week or face going into administration.
GAME Group has 1300 stores worldwide and is believed to need £180 million to pay creditors, suppliers and banks. According to the Press Association, GAME faces a £21 million rent payment next Sunday and a £12 million wage bill at the end of the month. It owes more than £10 million in deferred VAT (similar to the GST in Australia) and £40 million to suppliers. Approximately £100 million is owed to GAME's banks.
GAME UK has signalled that financial losses for the month of January alone are likely to be around £18 million.
It is believed that the struggling retailer is looking for a buyer, although no deals have yet been struck.
The Australian arm of the retailer has not reported similar struggles to the UK arm. We have reached out to GAME AU for comment.