OpCapita has offered to buy out Game Group’s lenders in a move that offers a lifeline to the struggling video game chain.
The move would see the distressed investor, which earlier this year acquired Comet for £2, take control of Game. The Times understands that suppliers’ outstanding bills will be paid in fuill as part of the OpCapita package.
Game is in limbo, with just 11 days before its quarterly rent bill is due. Key suppliers, including Nintendo, Capcom and Electronic Arts, are withholding key releases and lenders, led by the Royal Bank of Scotland, are reluctant to offer any additional support.
The company has already warned shareholders that they may be wiped out by the actions the board are considering to keep it afloat. It employs about 6,000 staff in Britain and Ireland and has more than 600 stores.
The lenders’ response to the offer was not immediately clear this afternoon. RBS declined to comment.
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Game Group shares fell 64 per cent on Monday after the company said that it was “reviewing the position of all of its assets in the UK and international territories”. Game employs around 6,000 staff in the UK and the Republic of Ireland.
Its shares were up almost 22 per cent, or 0.25p, at 1.42p in afternoon trading.