Opcapita pull GAME back from the brink

The investment group, Opcapita, will announce on Sunday it is buying a large part of the troubled Game Group out of administration, the BBC understands.

The deal will keep open 333 stores and save 3,100 jobs.

Half a dozen banks, led by Royal Bank of Scotland, who are owed £85m, have approved the takeover, says BBC business editor Robert Peston.

Last Monday the video game retailer went into administration, with 277 stores closing down immediately.

Administrators PricewaterhouseCoopers (PwC) also announced 2,104 staff would be made redundant but the remaining 333 stores were kept open as they searched for a buyer for the business.

The retailer had suffered from high fixed costs and an ambitious international expansion.

Its' business has been hit by competition from online retailers.

Richard Wilson, chief executive of games industry trade association Tiga, welcomed the deal but said Game would have to develop its online business to survive.

He said: "It's important for the company to change to consumer spending habits, and it's really vital that Game also appeals to video game developers. Many video game developers in the UK are of course selling online as well.

"Game is going to have to change its strategy but that doesn't mean it's impossible, and the fact that Game has got this new backing behind it, this new management, I think that's all for the good."

I finally ran out of sympathy for the game group this week, the local game shop closed down and moved all its stuff to the game station. I decided to check out if the sale advertised was any good.

I have been looking to pick up Arkham Asylum for the last few months and pop in periodically to check the prices (gamestation is opposite to CEX in Exeter so handy to check prices). Ever since i started checking the price has been consistently at £12, but i go on saturday and there is a big sticker saying it was £14 but now reduced to £12.

I wont be making any more purchases from a company that seems intent on mugging the consumer off!

Its this kind of practice they have got to ditch if they hope to survive. Its good that the stores and staff are being kept as a lot of people who didnt deserve to lose their jobs now won't but the management of the company has got to be thoroughly sorted out