Sports Direct founder Mike Ashley has bought a 26 percent stake in struggling UK video game retailer GAME.
A short statement from Game Digital confirms Sports Direct, which is the largest sports equipment retailer in the UK, has acquired 44 million of the company’s shares.
The deal comes shortly after GAME issued a profit warning, and saw its share price drop by almost 30 percent to just 23 pence (30 cents) per share.
The company blames its current financial difficulties on a shortage of Nintendo Switch stock and the “softening” of the core Xbox and PlayStation markets.
Given it’s current predicament, GAME says it’s pleased its “strategic value” has been recognised by Sports Direct.
“GAME is aware that Sports Direct has taken significant strategic equity stakes in a number of retail and brand businesses across both the UK and USA, and is a leading retailer which partners with major global brands and suppliers,” reads a company statement.
“The Group looks forward to working collaboratively with Sports Direct to explore the clear opportunities that a constructive partnership and collaboration can deliver for all stakeholders in the gaming, live events and rapidly growing eSports markets in which it operates.”
Read more about:
2017