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GAME struggles to secure new stock, reportedly up for sale

UK retailer now has two weeks to pay landlords

The worst is steadily getting worsterer for UK retailer GAME, which has apparently put itself up for sale via independent financial advisory group Rothschild, with auditing outfit Deloitte waiting in the wings should insolvency strike.

According to a new Sunday Times report (via MCV), the firm now has two weeks to pay landlords. Failure to stump up rents would send GAME into administration, jeopardising thousands of jobs.

GAME's long-standing credit woes ignited this month when the retailer announced it would be unable to stock Mass Effect 3 among other EA March releases, following the publisher's refusal to meet what GAME calls "manageable credit terms".

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Missing Mass Effect 3 is just the tip of GAME's iceberg.

The company has been talking to EA and other suppliers about future business, but the going is slow. GAME is now worth just £15 million at market, with a share price of 3.5p.

A statement released earlier this morning reads: "Further to GAME's announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3rd February 2012, and to meet its revised strategic plan. While these discussions are on-going, it has not been possible to source new products from a number of suppliers.

"The Board of GAME is working actively to resolve these issues as quickly as possible. This includes on-going discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.

"It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company."

According to some analysts, a new Xbox console could restore GAME's flagging fortunes. Branches of GAME and Gamestation are currently running a Spring Clean Promotion in a bid to power-up revenues. US juggernaut Gamestop reportedly has designs on the Spanish side of the business.

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