Gamestation, the UK's second largest specialist games retailer has effectively been put up for sale as its parent company Blockbuster continues to struggle financially.

Blockbuster posted a $491.4m loss for Q3 and has warned investors and the market it may be forced to seek bankruptcy protection if it fails to secure a new credit agreement with lenders.

Blockbuster may also have to sell some of its non-core operations after revealing many of their assets were being used to secure existing loans. Game Rush, Rhino Games and Gamestation all look set for Blockbusters chopping block. Gamestation was acquired by Blockbuster in 2003.

Blockbuster may be forced to consider selling some of its non-core operations after its filing with the Securities and Exchange Commission revealed 'a very large majority' of assets were already being used to secure existing loans.

Notwithstanding its performance relative to the overall rental industry, Blockbuster is still experiencing declining revenues. In order to address this, management intends to focus on the company's core in-store and online movie rental business and will review its non-core operations to determine whether each fits its strategy. The company is open to possible sale, divestures, conversion to core concepts, or store closings, and will entertain appropriate offers.

Blockbuster US has said that it is focused on two things: growing its share of the store-based rental business and growing Blockbuster Online. In support of this more focused approach to its business the company is exploring its options in regards to certain assets, primarily non-Blockbuster-branded assets like DEJ Productions, the company's movie acquisition and distribution subsidiary.

The company has also said it would consider the sale of some or all of its international markets and brands under the right set of circumstances. However, no decisions have been made, according to the company.

BIOS, Nov 18, 05 | Print | Send | Comments (0) | Posted In Game