Game’s banks are mulling a rescue of the retailer that is poised to go into administration as early as today.
It is thought banks, led by state-backed RBS, are working on a deal to buy a slimmed down Game out of administration to claw back its money. The games specialist filed a notice of intent to appoint an administrator on Wednesday.
Sources close to Game had previously blasted the banks for walking away from a potentially life saving deal, tabled by Comet Owner OpCapita. It is thought the firm is unlikely to table another bid, but has not ruled it out.
US rival GameStop is also in discussions with soon-to-be appointed administrators PwC, as well as Hilco. Retail-Week.com revealed on Thursday that PwC had received “5 or 6” serious expressions of interest in Game’s UK arm , which has 600 shops, according to sources close to the situation.
The 1,300-store retailer owes nearly £100m to the banks, with RBS owed about £40m.
It is thought that the banks believe there is still room on the high street for a games specialist.
Landlords could end up losing out through the administration process. They are owed a quarterly rent bill, due over the weekend, of £21m, but Game is not liable to pay any creditors because of its 10 day moratorium period.
Game suppliers refused to supply Game with key titles last month, worsening the retailer’s decline. In February it had hired Rothschild to seek a buyer for its large overseas arm, but any deal is now likely to be done following an administration.