Close to 700 stores were being earmarked for sale or closure this week as struggling retailer Game lined up administrators and Comet began negotiations with its landlords.
Game Group this week filed a notice of intention to appoint PwC as administrator to the business, which has 600 stores.
The retailer said there was “no equity value left in the group” and “discussions with stakeholders have not made sufficient progress to offer a realistic prospect for a solvent solution”.
Elsewhere, OpCapita, the private equity owner of Comet, has written to agents outlining a list of around 60 of its 240 stores that it would potentially like to dispose of. The sales are expected if landlords do not consent to a number of concessions.
Both moves come as the 25 March quarter day approaches.
“Trading is down, making this week’s payment a crucial time for many on the high street that are struggling to pay landlords, suppliers and their banks at the same time,” said Neil Smyth, a partner in law firm Taylor Wessing’s restructuring and corporate recovery team. “Fashion, household goods and electronic retailers, in particular, are likely to be feeling the squeeze.”
l Retailer portfolios could shrink by 30-40% in the next five years, says Deloitte. Its Changing face of retail report says retailers are being forced to question their property needs. While there remains a role for physical space, this will be in a different format and potentially on a “radically smaller scale”, says Deloitte.
Samantha.mcclary@estatesgazette.com
