RBS to claw back cash after Game is saved

ROYAL Bank of Scotland has salvaged some of its money from the collapse of computer game retailer Game after private investment firm Opcapita purchased the company in a move that secured the jobs of 270 Scottish workers.

Opcapita, a specialist in company turnarounds, has taken control of Game’s UK operations, including 35 stores in Scotland.

It is understood that David Hamid, former chief executive of car parts retailer Halfords and operating partner at Opcapita, has been appointed executive chairman of Game.

Opcapita is also seeking a chief executive to replace Ian Shepherd who stood down when Game went into administration last week.

It is understood that Game’s lenders, led by Edinburgh-based RBS, have agreed to write off around 45% of Game’s £85 million debt load. Opcapita’s vehicle, Baker Acquisitions, will assume the rest.

The full financial terms have not been revealed but Opcapita said Game would be provided with enough capital to trade normally.

Henry Jackson, managing partner of Opcapita, said: “We strongly believe there is a place on the high street for a video gaming specialist.

“We have assembled a strong team of experienced industry operators to implement the programme of operational change that is needed.

“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.”

Mike Jervis, partner at Game’s administrator Pricewater house coopers, said: “This means that the Game brand will not be another one of the retail names disappearing from the high street in the current difficult climate.”

Before its descent into administration, Game had 52 stores and a workforce of 402 in Scotland.

PWC last week closed 17 of these stores, including four in Glasgow and two in Edinburgh, and made 132 employees redundant.

Across the UK and Ireland 277 stores closed and 2089 workers were laid off. This left it with 333 stores, employing 2814 people.

Opcapita said it has no plans to close more stores and that a small number of head office staff laid off will be re-employed.

Game struggled when a poor Christmas season prompted suppliers to hold back new games.

High street games stores have struggled to cope with online and supermarket competition.