GAME Administrator Confident, RBS Interested

GAME's administrator Price Waterhouse Cooper believes a sale is more than possible for part or all of the troubled retailer and with Royal Bank of Scotland (RBS) supposedly tabling an offer, that could well be true sooner than originally thought.

"The group has faced serious cashflow and profit issues over the recent past, and it has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements," said joint administrator and partner at PwC Mike Jervis in a statement.

"Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one, the UK. As a result we are hopeful that a sale of the business is achievable."

While a GameStop statement from last week seemed to suggest no help would be forthcoming from the US game retailer, a group of lenders headed by RBS could now be the forerunner in the bid to buy up a large stake in GAME. Other potential purchasers include Walmart, Hilco and Comet owners OpCapita - though an offer by the latter firm was turned down by a collection of lenders, including RBS.

GAME has over 600 stores in the UK alone, with upwards of 5,000 staff. No doubt they will be watching the proceedings of the next few days very closely.