Fears for Game as major supplier pulls delivery plug

The future of Game Group was again in doubt today after one of the world's biggest games companies refused to supply it with its latest products over concerns about its creditworthiness.

Game said in an internal memo today that Electronic Arts had rejected its plea for relief on its credit terms to sell the Mass Effect 3 game due for release next week. The retailer, which has 610 UK stores and is desperately trying to sell its overseas business, "apologised sincerely" and guided customers to EA's website and online rivals Amazon, Play, Zavvi and shopto.net.

Shares in Game crashed by 0.9p, or 15%, to 4.99p. Game posted a loss of £18 million for the year to 31 January.

In the memo, Tom Devine, the group's channel director, said: "We will not stock products if the terms are not right for our business - we will not sacrifice long-term credit requirements for short-term sales opportunities.

"As a result of us taking this position - a position that we believe is critical to our long-term health as a business - we have taken the very difficult decision not to stock EA's March releases, including Mass Effect 3." It is unclear if Game will stock EA's Mario Party Nine game.

Game's future had looked brighter earlier this month when its lenders relaxed the terms of its loans.