Sports Direct owner Mike Ashley has injected a huge amount of cash into video game retailer GAME equalling to a little over 25% of the company’s shares.
Following GAME’s shares plummeting as of late after a poor first quarter which the company blamed on a lack of Switch stock (really…), owner of Sports Direct, the forever closing-down sale store, has swooped in to snap up 25% of the struggling retailer.
“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.”
It’s not unusual for companies to have stakes in others, Sports Direct itself have shares in companies like Debenhams, for example. However Sports Direct has been widely known as of late for poorly treating its staff where Ashley himself admitted that the company had been paying staff less than minimum wage.
I guess it won’t be long until GAME start selling incredibly impractical oversized mugs for a quid, eh?