Game Secures Lender Support Amid FFXIII-2 Stock Problems

High street chain Game has revised its annual forecast, and also confirmed it has agreed 'revised terms for its facilities' that "will allow the company to continue to trade."

The news comes amid concerns that Game and Gamestation would struggle to stock new releases; despite assurances that this week's new games - Final Fantasy XIII-2, Metal Gear Solid HD Collection and Soul Calibur 5 - would arrive in store for release today, NowGamer can confirm that smaller stores are struggling to meet demand for Final Fantasy XIII-2, with numerous smaller stores across the UK unable to offer copies to customers that didn't pre-order the game.

Our advice? Try and get to the bigger stores for new releases - even some of the larger Game shops we spoke to were waiting for copie sof Final Fantasy XIII-2 to be delivered on Friday morning.

Game now expects to post an £18m loss for the year ending 31 January, but admitted it wasn't out of the woods - despite the new lending agreement.

"We're pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan," said Game CEO, Ian Shepherd.

NowGamer originally broke the news earlier this week that Game Group was potentially bracing itself to receive no new stock from its publishing partners.

Check out Game's latest statement below:

Revised guidance:

Having received support from its stakeholders and lenders, the Board now believes that GAME will meet its covenant tests for the period to 31 January 2012 when tested on 27 February 2012. The Board now expects that the loss before tax and non recurring items will be around £18m for the year to 31 January 2012.

Financing update:

Further to the announcement earlier today, the Board of GAME is pleased to announce that it has now concluded discussions with its lending syndicate and agreed revised terms for its facilities.

Under the terms of the revised facilities, the Group has agreed to operate within lower limits of its existing facilities than was previously available. These revised facilities will allow the company to continue to trade. The Group has also agreed to provide an updated strategic plan for review, and approval in part, by the lenders. This plan will cover all aspects of the business's activities and strategy, including its overseas operations.

Ian Shepherd, CEO of GAME said "We're pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan."