Sports Direct launches Game takeover bid

Mike Ashley’s Sports Direct is making a £51.9m bid to take over retailer Game Digital, which could result in Game store closures. It made a full takeover offer for the business after upping its stake in the retailer to 38.49% from 29.9%. Sports Direct said it planned to work with Game to review issues including the location, size and lease terms of Game’s sites, and its headquarters and distribution centre. The retailer said this may result in consolidation with stores within the Sports Direct group. There are 272 shops within Game’s store portfolio measuring a combined 530,832 sq ft, based on an average store size of 1,981 sq ft. If the bid is successful, the review “could result in consolidation or closure of Game sites and a consequent reduction or relocation in the employment of Game’s employees and management”. Game had agreed to sell half of its Belong esports business to Sports Direct for £3.2m in February 2018. Sports Direct intends to open concessions of the chain, as well as Belong-branded gaming “arenas”, within Sports Direct, House of Fraser and other stores that it owns, as part of a strategy to bring in more experiential retail. The company said in a statement: “The retail and gaming sectors are fast-moving and currently subject to challenging conditions. “Sports Direct does not believe that, as a standalone business, Game is able to weather the pressures that it is facing. “Sports Direct believes that the offer, in providing Game with the wider benefit of Sports Direct’s operating and other experience and increased support, will secure Game’s future and allow it to navigate these pressures while contributing to Game’s long-term sustainability by escalating the evolution of the Belong business and accelerating the next stage of Game’s development.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette