Game rescue deal safeguards 3,200 jobs

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.

The Telegraph reports that the company 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’s managing director Henry Jackson said “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,”

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.