HMV set to benefit as Game struggles

HMV has received extra support from supplier Electronic Arts (EA) for the launch of Mass Effect 3 last week and the upcoming release of Fifa Street, The Times reported.

Last month, EA joined Nintendo on the list of suppliers to have walked away from discussions over relaxing terms for Game, resulting in the retailer being unable to stock crucial new releases.

Game, which employs around 6,000 people in the UK, yesterday acknowledged doubts over its future.

Its shares fell 64% after it warned the value of the business could be wiped out.

The retailer is struggling to pay its quarterly rent bill which is due by the end of the month and has reportedly asked landlords to be able to pay monthly instead.

Game has put itself up for sale and has hired Rothschild to handle the process. Last month Retail-Week.com revealed Game had hired Rothschild to sell its overseas arm. It is thought Hilco and GameStop are among those interested.

Deloitte’s services have been sought to deal with a potential insolvency, including a possible pre-pack administration.

Private equity group OpCapita may consider the 600 UK stores due to potential synergies with Comet, the Financial Times reported.

Game’s like-for-like sales fell 12.9% over Christmas and reported net debt of £91m for the first-half last July.

Game chief executive Ian Shepherd said yesterday on Twitter: “Very tough time for all our teams around the world. We fight on, though. Plenty still to do customer support humbling as always.”