Six bidders eye GAME UK

GAME UK has attracted the attention of "five or six" potential buyers, Retail Week is reporting.

Meanwhile, a further 20 suitors are interested in the company’s international assets – with its Portugal and Spain outlets the most attractive prospects.

As widely rumoured, GameStop is amongst the top suitors. But according to the publication, it will not be drawn into a bidding war for the firm. Hilco is interested in the international assets, while OpCapita has not ruled out a further bid.

The news follows GAME’s intention to go into voluntary administration. An administrator, believed to be PwC, will be appointed this morning.

GAME has ten days to find a buyer. During that time it will be protected from creditors including GAME’s landlords. The retail giant’s 21m rent bill is due this Sunday.

The banks, which included RBS, Barclays and HSBC, turned down a potentially life-saving offer for GAME from OpCapita last week. According to Retail Week’s source, the banks were more interested in ‘minimising the size of their haircut’.

RBS was also part of a banking facility that turned down an offer to rescue Peacocks before that chain fell into administration.

A City analyst expects GAME to survive, although it is believe the firm’s UK store count will be cut from 600 to between 300 to 400, as previously reported by MCV.

GAME announced its plans to enter administration yesterday. It hit financial trouble following a poor festive sales period and failed to persuade suppliers to give it better terms.