The controversial retailer Sports Direct bought 44 million GAME shares.
Retailer Sports Direct has poured a lot of money into GAME. As GamesIndustry.biz reported, company owner Mike Ashley has acquired 44 million GAME shares and owns now 25.75 percent of the company.
Just recently, the retailer had issued a profit warning. Due to several reasong, GAME would deliver profits “substantially below previous expectations.” As a result, its share price dropped below 20p.
It’s is not the first retailer in which Sports Direct invested. The firm already owns a stake in other shops, including French Connection and Debenhams. But it’s also known for several legal issues. Inter alia, Ashley has recently been in court, after a former colleague claimed that he would pay him £15 million for raising Sports Direct’s share price. There there furthermore investigations into the company’s working conditions last year. Ashley admitted to paying the emlpoyees less than minimum wage.
“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,” a GAME spokesperson said.
“GAME is pleased that the strategic value of the group has been recognised by Sports Direct through this acquisition of a 25.75 per cent stake. 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.”