Jobs saved at Game

The investor behind the turnaround deal for Comet has taken on Game Group.

High street retailer Game has been rescued by private equity firm OpCapita, pulling the computer games seller out of administration.

OpCapita, which specialises in turnaround investments in the retail, consumer and leisure sectors, says that it ‘strongly believes’ in the future of Game.

Under the terms of the deal, Game is to be acquired by Baker Acquisitions, an entity advised by OpCapita.

Baker will also purchase the 333 UK shops which have remained open during Game’s period of administration. Those head office workers who received redundancy notices last week will also have the possibility of re-employment.

Henry Jackson, partner at OpCapita, comments, ‘We strongly believe there is a place on the high street for a video gaming specialist and Game is the leading brand in a £2.8 billion market in the UK.

‘We have assembled a strong team of experienced industry operators to implement the programme of operational change that is needed. There is a huge amount to do but we look forward to the challenge of restoring Game’s fortunes in partnership with its employees and suppliers.’

In February OpCapita completed the acquisition of fellow retailer Comet in a deal worth £2, and has since axed 500 jobs. However OpCapita says it has no plans to cut jobs at Game.

The deal with OpCapita comes after Game first suspended its shares and then entered administration.

The company’s offerings were not able to compete with the price of games available on Amazon, while Game itself was often accused of having a reputation for poor customer service.

More recently the group encountered troubles when a number of videogame publishers including Electronic Arts announced that they would not be supplying Game with new titles including sci-fi release Mass Effect 3. The company employs over 6,000 people in the UK.

Hunter Ruthven

Bernard Williamson

Hunter was the Editor for GrowthBusiness.co.uk from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

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