We’ve talked before about the woes of UK-based games retailer GAME. The company has been struggling to stay afloat for some time, and is so financially unstable that several games publishers have refused to provide the store with their most recent releases. Sadly, things don’t seem to be getting much better for the company—stocks dropped to half a penny early this morning.
If you’re a follower of the market, that’s a 98.6% reduction from GAME’s stock value in 2002. Rumors are floating around that the company may try to liquidate some of its less successful branches in an effort to consolidate profits and mitigate the massive financial downturn; analyst forecasts are still looking pretty bleak. The company is even on the verge of defaulting on its rent.
Also spinning around the GAME rumor mill? Indications that US-based GameStop may jump into the mix and purchase some of the company’s assets. If this occurs, GameStop may be able to keep the company moving and protect some of the employees at GAME’s 1300+ locations.
Regardless of store consolidation or a last minute save by GameStop, it’s unclear whether GAME’s stocks are going to reverse their slide. For the moment, GAME seems to be in dire straits indeed.