Sports Direct Owner Picks Up GAME Shares
Sports Direct now owns 25.75% of the embattled high street retailer GAME, after snapping up 44 million shares in the company this morning.
GAME’s struggles have been going on for several years – they entered administration back in 2012, and most recently issued a profit warning at the end of last month stating that it would deliver profits that would be ‘substantially below market expectations’. The main reason they cited was stock shortages of Nintendo’s new Switch console – and the stock market responded accordingly with shares sliding further in value.
Sports Direct is owned by controversial British billionaire Mike Ashley – and has been criticised in the past for withholding payments, poor working conditions and failing to pay staff correctly.
Whilst internet response to the news has been mixed (to say the least!) the stock market has responded positively to the news – as have GAME’s management team who issued a statement:
“GAME is aware that Sports Direct has taken significant strategic equity stakes in a number of retail and brand businesses across both the UK and USA, and is a leading retailer which partners with major global brands and suppliers,” GAME wrote.
“GAME is pleased that the strategic value of the group has been recognised by Sports Direct through this acquisition of a 25.75% stake. The Group looks forward to working collaboratively with Sports Direct to explore the clear opportunities that a constructive partnership and collaboration can deliver for all stakeholders in the gaming, live events and rapidly growing esports markets in which it operates.”
What are your thoughts on the development? Do you shop at GAME? Or Sports Direct? Or both? What do you think the future has in store for videogame retail on the high street? Let the debate commence in the comments below.
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