Game Digital, the video games retailer that returned to the stock market in 2014 two years after going bust, is under pressure to explain a near-40% leap in its share price.
The shares closed on Friday at 69p, after climbing 37% during the week, to give the company a valuation of £117m. The chain has about 580 stores, split between the UK and Spain, and has endured a tough year after sales of gaming consoles struggled.
Its predecessor, Game Group, went into administration in 2012 with a swathe of store closures, before being bought by OpCapita, the private equity firm run by financier Henry Jackson. Its 2014 float, priced at 200p a share, led to a reported £101m payday for its backers, OpCapita and the hedge fund Elliott Advisors.
Stockbroker Liberum, which arranged the company’s return to the market, recently sounded the alarm over the sector. Sales of boxed video games have fallen 14.6% this year because of a weak selection of titles, according to Liberum. Hit franchises, such as Call of Duty, are also on the wane.
Game said yesterday that it would not comment on market speculation.