Game issues bank-covenant warning

Video games retailer Game warned today that it is set to breach a banking agreement after a dismal Christmas capped an “incredibly tough” year for the industry.

The group, which has 1,300 stores worldwide trading under the Game and Gamestation brands, said that, given difficult market conditions, it will not meet a banking covenant – a promise made to creditors to secure a loan – when it is tested at the end of February.