There have been many press releases, alleging that Gala Coral owe more than £2.5Billion, and are unable to make repayments to lenders. Only days ago, the Mirror released a report that stated, a leaked internal memo revealed Gala Coral were planning to streamline operations, and planned to halve current management positions. Undoubtedly, Gala Bingo are on a major cost cutting exercise.
The Mail Online have since published a report, based on information from an inside source. According to them, top management will be shown the door, and the group may well have to be “broken up and sold off”, if new investors are not found soon. Things are definitely not looking good for Gala Bingo.
The situation certainly throws some perspective, upon just how big the problems are, within the industry as a whole. Gala Coral are a well established company, with millions of pounds in equity. If their head ends up on the chopping board, what chance does the little guy have?
It’s believed that Gala Bingo have £250Million on the books, which is currently frozen, due to the terms and conditions of loans with current investors. If the Gala Coral Group can exchange debt for equity, with investors, the £250Million will be released. In which case, for everyone's sake, lets hope that Gala Coral find new investors, and soon!
This was an article by Lisa for Bingo Faces on Gala Bingo
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