SNACR Posted March 17, 2012 Share Posted March 17, 2012 1000-1500 sqFt is £140,000 PA+50K rates in centreMK, and guess what , due to game's buying sprees they have 3 of them! Two within spitting distance of each other, the other 50 metres away. It soon adds up. With that many in proximity I'd be surprised if leases haven't expired and they've remained on soft deals. That's probably what agents are optimistically marketing new leases at but existing tenants will be at different points in the rent review cycle and most likely on lower rents. Assuming they were on such terms (£35k+vat/quarter) in centreMK that would average down to a lot less as somewhere like Swindon town centre they'd be paying nowhere near as much. I know the UK retail market and typical rents very well £20m is the most I could conceivably see their quarterly rent bill being on 600 stores of their size. Quote Link to comment Share on other sites More sharing options...
FIGGY Posted March 17, 2012 Share Posted March 17, 2012 Are they inclduing the international stores? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 17, 2012 Share Posted March 17, 2012 snip If I'm wrong they're in dire need of a pre-pack to wring much, much softer deals out of landlords. sounds like a fraud. Isnt that a classic Mafia trick...run up your credit, sell the goods cheaper than anyone else, rinse and repeat till the money is gone....? Quote Link to comment Share on other sites More sharing options...
SNACR Posted March 17, 2012 Share Posted March 17, 2012 Are they inclduing the international stores? Wouldn't have thought so as the rent quarterly in advance on commercial leases is typically a UK only thing that goes back to medieval times. This is a big cashflow pinchpoint at the end of this month that is what is believed will almost certainly tip Game into insolvency. Quote Link to comment Share on other sites More sharing options...
SNACR Posted March 17, 2012 Share Posted March 17, 2012 sounds like a fraud. Isnt that a classic Mafia trick...run up your credit, sell the goods cheaper than anyone else, rinse and repeat till the money is gone....? No, not at all fraudulent. Commercial Landlords should not really find themselves in a position of losing significant sums in rent arrears during a business administration given the exceptional arsenal of legal remedy available to them compared with say trade creditors. If they do it simply means they don't think they could easily re-let at the same high rent if they re-entered and that's no-one elses fault and an inherent risk of property speculation. If a retail chain falls into administration it has the effect of terminating existing leases and terms can then be renegotiated. These terms may simply be to pay the business rates - the landlord has two choices either accept or decline - at this stage in the game most know if they let the existing tenant go the best they could end up with B&M Stores/Poundland/99p Stores or worst case a charity shop or void. Lease renogotiation is no different after administration than normal except it occurs all at once. If I have a lease expire currently I would not consider renewing it without any major concessions in both rent figure and terms Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 17, 2012 Share Posted March 17, 2012 One day you'll say that about an EA's office. LOL! Quote Link to comment Share on other sites More sharing options...
200p Posted March 19, 2012 Share Posted March 19, 2012 Over the weekend; Game needs £180m or it is "FATALITY" http://www.google.com/hostednews/ukpress/article/ALeqM5jjLAnGusurnI9Ntu4Y9Jdqwot_aA?docId=N1174901332070337398A Quote Link to comment Share on other sites More sharing options...
bewildered_renter Posted March 19, 2012 Share Posted March 19, 2012 Over the weekend; Game needs £180m or it is "FATALITY" http://www.google.com/hostednews/ukpress/article/ALeqM5jjLAnGusurnI9Ntu4Y9Jdqwot_aA?docId=N1174901332070337398A Was tempted to buy X-Plane yesterday, £60 when it hit their shelves a week or two ago, down to £45, but I needed time to check out the reviews. So I have a few days. I'm going to miss them when they go (or rather what they used to be - nearly everything I want now has moved to on-line sales.) Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted March 21, 2012 Share Posted March 21, 2012 Not in trouble any more. http://www.investegate.co.uk/Article.aspx?id=201203210730037614Z "Fears for the future of retailer Game have intensified after its shares were suspended and it admitted the business has no value." "It has been reported that Game faces a £21m rent payment on Sunday and a £12m wage bill at the end of the month. It also owes more than £10m in VAT and £40m to suppliers. A new investor would have to pay up to £100m to Game's banks." http://www.guardian.co.uk/business/2012/mar/21/game-group-shares-suspended I don't think they're the only UK highstreet business that has no value, quite a few more will have to bare their soul before 2012 is out. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 21, 2012 Share Posted March 21, 2012 Nice sizeable debts run up. What have the directors been paid? Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted March 21, 2012 Author Share Posted March 21, 2012 (edited) "Fears for the future of retailer Game have intensified after its shares were suspended and it admitted the business has no value." "It has been reported that Game faces a £21m rent payment on Sunday and a £12m wage bill at the end of the month. It also owes more than £10m in VAT and £40m to suppliers. A new investor would have to pay up to £100m to Game's banks." http://www.guardian.co.uk/business/2012/mar/21/game-group-shares-suspended I don't think they're the only UK highstreet business that has no value, quite a few more will have to bare their soul before 2012 is out. +1 There's an article on it, linked from your links page re:.deloitte report. Up to 40% of high street shops 'could close over next five years' http://www.guardian.co.uk/business/2012/mar/20/high-street-shops-close-deloitte Edited March 21, 2012 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
Blue Peter Posted March 21, 2012 Share Posted March 21, 2012 I don't think they're the only UK highstreet business that has no value, quite a few more will have to bare their soul before 2012 is out. Forgive me for not reading all this thread, but I assume that there must be a chunky debt in there somewhere? Whenever I observe Game (there are 2 in MK), there always seem to be quite a few people in there, and a number of them actually parting with money. Which is more than can be said for quite a few other retailers. Peter. Quote Link to comment Share on other sites More sharing options...
OnionTerror Posted March 21, 2012 Share Posted March 21, 2012 Will this bring Gamestation down as well? I take it, it will... Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 21, 2012 Share Posted March 21, 2012 http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9157253/Game-Group-heads-for-pre-pack-administration-shares-suspended.html Game Group – the video games retailer – is preparing for a pre-pack administration that will see the company slim down to just 300 out of 1,300 stores. So 1000 stores are going to close, more empty shops for the high street. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 21, 2012 Share Posted March 21, 2012 Forgive me for not reading all this thread, but I assume that there must be a chunky debt in there somewhere? Whenever I observe Game (there are 2 in MK), there always seem to be quite a few people in there, and a number of them actually parting with money. Which is more than can be said for quite a few other retailers. Peter. http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9157253/Game-Group-heads-for-pre-pack-administration-shares-suspended.html The proposal tabled by OpCapita offered to settle the debts with lenders – led by Royal Bank of Scotland, as well as £40m of debts outstanding to suppliers.RBS is owed more than £45m with Barclays and HSBC are amongst several lenders believed to be owed around £30m each. Game needs to raise around £180m in time for its 25 March quarterly rent bill. It just needs a few quid that's all. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted March 21, 2012 Share Posted March 21, 2012 (edited) Sky Breaking News: Game intend to appoint an administrator !!! "Retailer Game Group has filed notice of intention to appoint an administrator" Game over. Edited March 21, 2012 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
Monkey Posted March 21, 2012 Share Posted March 21, 2012 http://uk.games.ign.com/articles/122/1221258p1.html and there is it Following this morning's news that GAME's shares have been frozen on the London Stock Exchange, the firm has now announced its intention to go into administration. Below is GAME's statement to shareholders: "Further to this morning's announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business. The board has therefore today filed a notice of intention to appoint an administrator." What does this mean? It means that the company is in dire, dire straits, though the stores will stay open in the immediate term whilst administrators try to determine the future of the company - whether that's refinancing or, potentially, closure. Ultimately, an administrator's goal is to keep the company trading, but there's no knowing what form GAME could be in at the end of it. We're currently investigating what implications for GAME and Gamestation staff. Hang in there, guys. More news as we get it. Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted March 21, 2012 Share Posted March 21, 2012 http://uk.games.ign.com/articles/122/1221258p1.html and there is it Well I bought mass effect 2 and dragon age 2 yesterday for a nice bundle offer of £15. Shame the only good games there were from a publisher whos kicked them into touch now ... Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted March 22, 2012 Author Share Posted March 22, 2012 Will this bring Gamestation down as well? I take it, it will... Yup Quote Link to comment Share on other sites More sharing options...
Gerinako Posted March 22, 2012 Share Posted March 22, 2012 Vouchers being accepted still? Mates got £30 left he hasn't spent - oh dear Quote Link to comment Share on other sites More sharing options...
200p Posted March 22, 2012 Share Posted March 22, 2012 I did give good warning further up in the thread Quote Link to comment Share on other sites More sharing options...
200p Posted March 22, 2012 Share Posted March 22, 2012 Blueshore acquired 9% of the shares a day before administration. Are they on the inside? Or just made a bad call? http://www.mcvuk.com/news/read/blueshore-urges-fair-and-just-administration-for-game/093142 Blueshore urges "fair and just" administration for GAME The value of GAME’s assets needs to be reassessed to ensure that shareholders receive a rightful return on their investment, Blueshore Global has told MCV. Having acquired new stock in the retailer yesterday before its filing for administration and stock freeze this morning, the company – which owns nine per cent of GAME – has expressed reservations about the upcoming period for the retailer. “We were always prepared for the possibility of administration. We are though a little puzzled that the Board thinks there’s no equity value. We humbly disagree,” Blueshore boss Harsha Gowda told MCV. “The company reported earlier in the year that their credit line was reduced not increased as reported in the media. GAME clearly stated in February that they will 'operate within lower limits of its existing facilities than was previously available'." Gowda says that Blueshore was still acquiring GAME stock as recently as yesterday as the value of its raw assets have been misunderstood by the markets. “The media has discussed the cost of all liabilities without mentioning the value of the assets such as inventory,” he added. “We believe, as per the financial statements, the value of these assets exceed the value of the liabilities. “I want a proper valuation of GAME's assets, including its HQ, French deposit money and online operations.” Harsha even stressed that he would be prepared to take legal action should he feel that administration is not correctly handled. “Money collected from the potential sale go first to secured creditors, unsecured creditors and then shareholders. We believe there should be enough value to fulfill all of those obligations,” he insisted “Even if, say, 50 per cent of stores are closed, the value received from the buyer of the other 50 per cent would be sufficient to pay off liabilities such as leases and severance and still off substantial positive value for shareholders. “It needs to be a fair and just process. I’m confident, but a little concerned by the Board’s no equity value statement. We will protect our rights.” Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted March 22, 2012 Share Posted March 22, 2012 (edited) . Edited March 22, 2012 by Georgia O'Keeffe Quote Link to comment Share on other sites More sharing options...
OnionTerror Posted March 22, 2012 Share Posted March 22, 2012 It'll be interesting, if it is run as a going concern, whether they will just merge the Gamestation & Game brands, although I wonder if they can do this, with all the rental agreements they have... They were supposed to have two "identities" whereby GS were concentrating on retro...Is there much demand for copies of Night Trap on the MegaCD for instance? Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted March 25, 2012 Author Share Posted March 25, 2012 (edited) The Wolf(enstein) is at the door ...... http://www.mcvuk.com/news/read/report-game-talks-collapse-administration-sell-off-imminent/093340 GAME talks collapse, administration sell-off imminent http://www.express.co.uk/money/view/310365/Thousands-facing-axe-as-Game-ends- THOUSANDS FACING AXE AS GAME ENDS Edited March 25, 2012 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
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