It looks like the beginning of the end for Game stores in the UK according to Eurogamer (Game have been in trouble for some time):
Eurogamer has heard from multiple UK industry sources that the specialist video game retailer has lost credit insurance with a number of agencies.
This means that publishers are now forced to take the risk on games that do not sell - something they do not wish to do.
GAME is now being asked to pay for new stock with cash. If GAME doesn't have the cash, it could result in the shop being unable to stock new games.
Personally I hope this isn't the end as I don't want to have to go to a supermarket to buy a game (or music as HMV is in trouble too), whilst I sometimes use online shops for games its sometimes nice to browse and find the odd surprise on shelves.
I will try to keep you all posted on the matter if I can as I have both shop credit and pre-orders with Game myself and the info may be useful to someone else.
EDIT- 02/02/12 - the Game corporate website has the following statement on the matter:
Response to press speculation
In response to press speculation the GAME Group plc confirms that it is in ongoing dialogue with its lending syndicate to reach agreement on revised terms for its facilities. As part of these discussions, the lending syndicate is reviewing a strategic plan of the company which includes a review of its overseas operations.
A further announcement will be provided once discussions with its lending syndicate have concluded.
It seems the above is Game hinting at selling its overseas operations.
EA boss John Riccitiello has the following statement (does not mention Game as the retailer but it is pretty obvious):
EA boss John Riccitiello has voiced concerns about the financial health of a "major European retail partner".
Speaking during an investor call earlier today, Riccitiello didn't name the company in question, but explained that the situation could affect the publisher's next set of financials.
"We are concerned with the financial condition of one of our major European retail partners, which could lead to both increased bad debt and lost sales," he said.
Chief financial officer Eric Brown also chimed in later during the call.
"We are focused on some isolated European retailer issues that have recently been announced. A negative outcome could adversely affect our Q4 results."
UPDATE 02/02/12 (AGAIN!!)
GAME has worked out a new agreement with lenders that will allow it to continue trading.
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.