Losses mount as GamePlay keeps seeking a buyer
Published: 31 May 2001 08:27 BST
UK video-game retailer Gameplay confirmed on Wednesday that it was still in discussions with potential buyers as financial results showed it was close to running out of money.
In a statement, Gameplay announced that it had made a loss of £54.4m in the six months ending 31 January, compared to £10.4m for the same period a year before. Revenue was sharply up at £44.5m -- a eightfold increase on a year ago -- but the company was left with cash reserves of only £11.16m.
Since 31 January the company has been trying to cut costs, with 275 staff being laid off in February.
As previously reported, Gameplay is searching for a buyer for either its core technology, or the whole company. "In the light of its cash constraints and market conditions, the Board is also in discussions with third parties which may, or may not, result in the disposal of all or part of the remaining technology businesses, or alternatively, the company itself," Gameplay said in the statement.
Shares in Gameplay fell 40 percent to 4.5p in trading in London, a far cry from last summer's peak of £10.40. In the past it has made deals with Orange, Dixons and BSkyB.
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