U.K. Court: Electronics Boutique 1, Game Group 023 Oct, 2002 By: Hive News
Electronics Boutique, Inc. and EB Services Co. are claiming victory in a civil lawsuit brought against them by Game Group Plc. In the United Kingdom,
Game Group brought the action in the Chancery Division of the High Court of Justice in the United Kingdom seeking a ruling that it was entitled to terminate the services agreement between itself and EB Services Company.
The deal took effect in 1995 and does not expire until at least 2006, EB parent company Electronics Boutique Holdings Corp. reported.
EB Services Co. receives significant fees – EB reports about $6 million for the fiscal year ended February – for services provided to Game Group, which alleged in its suit that it was entitled to terminate the deal because a change of control had occurred with respect to EB Services Co.
In rejecting Game Group's claims after a four-day trial, the court determined that no change of control had occurred and therefore, Game Group was not entitled to terminate the services agreement.
"We are very pleased with this ruling by the English court and look forward to the continuation of the services agreement," said Jeffrey W. Griffiths, president and CEO of Electronics Boutique Holdings Corp.
The company is among the world's largest video game specialty retailers and operates 1,064 stores in the United States, Australia, Canada, Denmark, Germany, Italy, New Zealand, Norway, Puerto Rico, Sweden and South Korea -- primarily under the names EB Games, Electronics Boutique and EB GameWorld.