GameStation could be dropped in order to save GAME, it has been revealed.
Closing the chain of stores is one of The GAME Group’s preferred options to save the company, according to MCV.
GAME will enter voluntary administration before the weekend, which will be resurrected as a brand new company in its wake on Monday.
The move will remove the group from the stock exchange. It will also only include GAME’s UK and Spanish stores, while other regions will be left on their own.
Aside from a handful of well performing stores, GameStation will effectively cease to exist, removing duplicate stores owned by the group to save funds.
“If everyone commits it’s great news. A GAME with 300+ stores is what we’ll all get, which is basically where they should have been three years ago during the peak,” said the source.
“There’s no need for two, or even three, stores in the same town or city. They get a chance to reduce debt, keep trading and work out a plan for a new owner without so many financial and lease millstones around their necks.”
Other options include refinancing the entire company – although this has been reported to be ruled out – the arrival of a ‘White Knight’ investor, or administration and closure come next week.
GAME is currently holding crunch talks with suppliers in order to raise store rent for this weekend.
The group recently put itself up for sale after it was just weeks away from administration.
The high street retailer’s shares plummeted by 90% in 2011, despite £1 billion in annual turnover.