OpCapita bought the video game retailer out of administration on Sunday, rescuing the jobs of 3,200 staff not affected by last week’s closure of 276 Game stores.
It added that it would also re-employ some senior head office workers who were axed last week by administrators PwC.
Suppliers, who were owed £40m, will get nothing from the deal, while Game’s banks will have to take a 55pc writedown on almost £88m of loans.
OpCapita will convert the £39.6m of debt bought from the banks into equity through a company called Baker Acquisitions.
It will also pay an additional £10m to cover the costs of buying the business out of administration.
This includes a £5m a month wage bill, ongoing costs and fees owed to PwC.
“We strongly believe there is a place on the high street for a video gaming specialist and we have assembled a strong team to implement the programme of operational change needed,” said OpCapita’s managing director Henry Jackson.
“There is a huge amount to do but we look forward to the challenge of restoring Game’s fortunes in partnership with its employees and suppliers.”
The deal to save 333 stores is one of the few acquisitions out of administration that has kept most of the company and its concept intact.
PwC will now look at restructuring Game’s 1,270 overseas stores, which employ almost 4,000 people. The process is likely to see many outlets closed down.
OpCapita, which also owns electricals retailer Comet, is backed by the Goldman Sachs Special Situations fund.
The company is thought to have signed an agreement with Game’s suppliers to ensure new gaming stock is delivered to the company.
telegraph.co.uk
It added that it would also re-employ some senior head office workers who were axed last week by administrators PwC.
Suppliers, who were owed £40m, will get nothing from the deal, while Game’s banks will have to take a 55pc writedown on almost £88m of loans.
OpCapita will convert the £39.6m of debt bought from the banks into equity through a company called Baker Acquisitions.
It will also pay an additional £10m to cover the costs of buying the business out of administration.
This includes a £5m a month wage bill, ongoing costs and fees owed to PwC.
“We strongly believe there is a place on the high street for a video gaming specialist and we have assembled a strong team to implement the programme of operational change needed,” said OpCapita’s managing director Henry Jackson.
“There is a huge amount to do but we look forward to the challenge of restoring Game’s fortunes in partnership with its employees and suppliers.”
The deal to save 333 stores is one of the few acquisitions out of administration that has kept most of the company and its concept intact.
PwC will now look at restructuring Game’s 1,270 overseas stores, which employ almost 4,000 people. The process is likely to see many outlets closed down.
OpCapita, which also owns electricals retailer Comet, is backed by the Goldman Sachs Special Situations fund.
The company is thought to have signed an agreement with Game’s suppliers to ensure new gaming stock is delivered to the company.
telegraph.co.uk
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