SAVED: More than 3,000 jobs rescued at Game after shops are bought by investment firm
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UPDATED:
18:27 GMT, 1 April 2012
Hit: Game went into administration earlier this week, but a deal has now been struck to keep stores open
Nearly 3,200 jobs were saved today at struggling retailer Game Group after part of the business was sold to a turn-around investment firm.
Administrators confirmed that 333 shops have been bought by OpCapita, which recently bought electrical goods retailer Comet.
Game went into administration last Monday, shutting the doors of 277 shops and making 2,104 employees redundant.
Administrator PricewaterhouseCoopers has been searching for a buyer for the business, while the remaining shops were kept open.
The deal to save Game has been given the green light by six banks owed 85m.
Opcapita recently bought electrical goods retailer Comet for 2 and is understood to have paid a nominal amount, believed to be 1, for Game's assets.
However, the real cost will be taking over the company's 85 million debts. It is understood the company's lenders, led by Royal Bank of Scotland, will have agreed to roll forward the debts at the same time as taking a slight reduction.
OpCapita was among a number of potential bidders for the remaining assets including a consortium of existing banks including RBS and American rival Gamestop.
Richard Wilson, chief executive of games industry trade association Tiga, told the BBC: '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.'
The video games retailer had 609 stores under the names Game and Gamestation. PwC said earlier this week that it was hopeful that Game could be sold, with the group’s lenders, led by RBS, reportedly working on plans to buy a slimmed-down version of the retailer out of administration.
Game Group has suffered dire trading in recent months. Some suppliers, including Electronic Arts and Nintendo, refused to provide new games to the retailer as its worsening finances came under increased scrutiny.
Mike Jervis, joint administrator and partner at PwC, said: 'The group has faced serious cashflow and profit issues over the recent past.
'It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.'