Questions & Answers: Icon Digital Entertainment

28 November 2007

Questions & Answers: Icon Digital Entertainment Limited (“Icon”)

Q: Why were the 22 Sounds stores and one Games Plus store closed and is that closure permanent?
A: These stores were closed as part of the Administration process. Whether the closure is permanent will be a decision for the new owner of the business (if relevant).

Q: How many staff are affected? Have they been laid off and if so what payments will they get, such as redundancy pay? How many staff are still on the payroll?
A: Staff arrangements are confidential and will be discussed with each staff member rather than being provided to any external party. At present 18 stores are open (including both Sounds and Games Plus Stores).

Q: How many people hold Reward Cards and Gift Vouchers and to what value? Why can't they be redeemed now? Will they get their money back in time?
A: This information is still being collated by ICON and we are at present unsure as to the value and number of Reward Cards and Vouchers in the market. They cannot be redeemed at present as the stores are under the control of the Administrator. Whether voucher holders get their money back is still to be determined and will depend on the new owner of the business / whether the business is sold.

It’s important to note that the Administrators also have to respect the legal priority of all creditors involved in the administration, some who have a greater priority ranking over the stock of ICON than the Reward Card and Gift Voucher holders.

Q: Will they get a refund or credit if the business is sold as a going concern?
A: This will be up to any new owner to decide.

Q: How many people have paid deposits (layby) and to what value? Are they expected to get their money back?
A: This information is still being collated by ICON.

Q: The latest statement indicates Icon will be sold as a going concern. Can you indicate who the enquiries are from and when formal offers will close and a final decision on sale will be made?
A: Discussions with interested parties are commercially sensitive but as soon as a sale is confirmed (if relevant) an announcement will be issued.

Q: What is the expected value of the business?
A: This information is commercially sensitive and cannot be provided.

Q: Could the closed stores be re-opened under a new owner?
A: This will be over to the new owner of the business to decide (if relevant).

Q: What will happen to stock from closed stores?
A: Stock from closed stores has been re-located to the currently open stores.

-ENDS-

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