UK retailer Game reaches new agreement with lenders
Troubled UK retailer Game Group has received support from its stakeholders and lenders, allowing the company to continue to operate into the near future.
Earlier this week, it came to light
that the group was in talks with lenders about its credit issues, and was "reviewing a strategic plan" for its overseas operations that could see the company selling off more than half of its locations.
Game Group has already announced that it intends to shutter 60 shops in the UK by 2013 to cut its operating costs -- even more than than the 39 stores it closed last year.
In a new statement today, Game revealed that it has "concluded discussions with its lending syndicate and agreed revised terms for its facilities."
As part of the new agreement, Game has said that it will operate its business "within lower limits" than it was previously, while also providing an updated strategic plan for the future to its lenders.
Ian Shepherd, CEO of Game Group, 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."