After what seemed an eternity of speculation about the future of Europes biggest gaming retailer, the company has announced "concluded discussions with its lending syndicate and agreed revised terms for its facilities".
GAME has agreed to "operate within lower limits of its existing facilities than was previously available" which means that it's survival as a company is ensured for now.
After days of unofficial reports of GAME having problems buying in stock for new releases, this news should come as a relief for some. Due to the discussions with it's lenders and support from it's shareholders, GAME is confident it will manage to pass the requirements for it's covenant tests this quarter.
Ian Shepherd, CEO of GAME said:
"We're pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan."
The company is currently expecting loss before tax will be around £18m for the year ending 31 January 2012 - a figure lower than predicted by industry experts. As a part of the deal the company has to refresh it's strategic plan, which will be overlooked and approved by the lenders.
I personally think that this means there won't be another GAMEfest this year (which we covered last year with Soul Calibur 5 and Street Fighter X Tekken) and will probably result in a much lower marketing budget than what we've seen of late.
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