Embattled European retail chain GAME has worked out a new agreement with lenders that will allow it to continue trading.
As reported earlier today, it met with its lending syndicate this evening in an attempt to hammer out a deal. According to MCV, that meeting is now over and the retailer has "agreed revised terms for its facilities".
The retailer will have to "operate within lower limits of its existing facilities than was previously available" and has agreed to submit an updated strategic plan covering all aspects of its activities and strategies, which its lenders will then have a say in approving.
No indication was offered as to whether, as widely speculated, it will offload its overseas operations.
With this show of support from its stakeholders, GAME's board now believes it will meet impending covenant tests that at the beginning of the year it predicted it would fail.
It now expects to report a loss of £18 million before tax for the year ending 31st January 2012, a figure lower than many analysts had predicted.
Despite being thrown a lifeline, CEO Ian Shepherd conceded that ensuring the company's long-term survival will not be easy.
"We're pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan."
GAME isn't the first major UK entertainment retailer to be saved by its lenders this year, with HMV recently securing a bank rescue package. Tough times on the high street.