The future of Kingston’s Game video stores has been called in to doubt after their head office was forced to meet with lenders to discuss financial difficulties
Game Group PLC, which operates two stores in Kingston town centre and over 610 nationwide, has met with its lending group to discuss plans for the future of the store.
The result of the urgent meeting held on 2 February has ensured that, with help from lenders and stakeholders in the company, Game will continue to operate its stores under a new business strategy.
The company was forced to respond to press speculation that the videogame chain could no longer afford new stock. Despite reassurances that the company will continue to operate its UK-based stores, Game have confirmed that they will run these stores within lower limits to usual.
Ian Shepherd, CEO of Game said: “We’re pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required.”
The news that Game had been forced to meet with investors arrived only weeks after figures were released detailing the significant decline in sales for the chain of videogame stores over the Christmas period.
Game Group declared a drop in total sales of 18 per cent in the eight weeks leading up to 7 January in the UK and Ireland.
Videogame developer Dan Marshall, founder of Norbiton based company Size Five Games, said: “I think [consumers are] mostly moving toward Internet-based purchases, or skipping boxed products and getting digital-only versions of games.
“It’s only a matter of time before the idea of selling games in boxes will feel outdated and preposterous.”