GAME Owes Creditors £180 Million

Long standing UK retailer GAME owes a collective £180 million at the end of this month, with payments due to banks, staff and suppliers making up the majority.

Rent is also a consideration, as with over 1,000 stores, GAME will owe landlords over £21 million according to the Press Association. Employee payments will cost £12 million and there's another £10 million in VAT. However, GAME owes supplies more than £40 million and collectively bank payments are over £100 million.

Considering the stock price of the store has the entire business valued at just over £10 million, this isn't looking like a very attractive purchase. Perhaps it's understandable that several of those rumoured at making offers have been hesitant to do so. However, it is said that OpCapita - owners of Comet - offered to pay off the suppliers and take on the banking debt. According to The Guardian, Royal Bank of Scotland was having ongoing talks with the investment firm, but other banks weren't being as forthcoming - they include Barclays, HSBC and La Caixa.

GAME's financial troubles haven't been helped much by the shunning shown to it by major publishers in the past couple of weeks. First EA and Nintendo announced they wouldn't be providing stock of their latest titles - that included Mass Effect 3 which sold over 3.5 million copies in the first weekend of release - and was quickly followed up by Microsoft, Tecmo Koei, Capcom and Activision.

The deadline for the retailer is the end of the month, but executives have hinted at an earlier closing date if the sinking ship couldn't be turned around. Either way though, GAME as it has been known for the past couple of decades will be coming to a close in the next few days.