Game Digital has secured a £100m loan from a subsidiary of US hedge fund, Elliott Associates, giving the video games retailer a chance to take five as it attempts to restore its struggling business.
Game said the loan from Lajedosa Investments will replace existing revolving credit facilities. The gaming specialist has been specifically searching for asset-backed loans since 2016 as it would mean more flexibility. Now Game can be more nimble in responding to shifts in consumer spending habits by purchasing higher quantities of stock around the dates of new hardware and software releases.
Game, which collapsed into administration three years ago, needs all the help it can get. Last month it was revealed that half year pre-tax profits plummeted 32% and last year two profit warnings were recorded.
At the time, CEO Martyn Gibbs said that “operating in the fast-paced video games industry continues to present both opportunities and challenges”, blaming “market dynamics”.
