GAME looks to offload Australian stores after Christmas disaster in UK

GAME looks to offload Australian stores after Christmas disaster in UK

UK gaming retailer GAME looks likely to be pulling out of the Australian market, after striking a deal with its creditors to save the company from bankruptcy due to poor Christmas sales which includes plans to sell its overseas stores.

The deal allows GAME to continue lending, albeit within a lower limit. In return, the company has to provide an updated plan that will be approved by the lenders. The plan also includes a review of overseas operations – which could suggest the company could be looking for a buyer for its international assets to keep its UK stores afloat.

The company has 664 international stores – including 115 stores in Australia.

The company has reportedly been struggling due to the rise of online stores in the UK as sales during the Christmas holiday shopping season fell 15 percent. It has already announced it will be making a £18 million loss, and closing 60 of its 610 stores across the UK and Ireland by 2013. This is on top of the 39 stores it closed last year.

The struggle has also seen EA spooked. CEO John Riccitiello has noted during an investor call that he was concern of a “major European retail partner” – with many in the gaming press assuming it was Game.

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