GAME is in Negotiations with Lenders

GAME Group has announced that it is currently in talks with investors with hopes to secure a new line of credit moving forward.

The long time game seller has been under pressure from high-street retailers and online locations for quite some time now, prompting a push for revamping across the country similar to other firms like HMV. Reports over the past few days have been suggesting GAME has credit issues with game developers and publishers as well, potentially leading to stock issues at the GAME and Gamestation stores.

In a short statement released this morning, a spokesperson for the company said: "In response to press speculation the GAME Group plc confirms that it is in ongoing dialogue with its lending syndicate to reach agreement on revised terms for its facilities."

"As part of these discussions, the lending syndicate is reviewing a strategic plan of the company which includes a review of its overseas operations."

"A further announcement will be provided once discussions with its lending syndicate have concluded."

EA Games has publicly stated its lack of confidence in the retailer, though it is keen to repair this relationship. CFO Eric Brown, added: "We are focused on some isolated European retailer issues that have recently been announced. A negative outcome could adversely affect our Q4 results."

Source: Now Gamer, Games Industry