Electronics Boutique Holdings Corp · 8-K · For 10/10/02 · EX-99

Filed On 10/10/02 3:02pm ET   ·   SEC File 0-24603   ·   Accession Number 912057-2-38228

Current Report   ·   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         3     12K 
 2: EX-10.1     Material Contract                                     25    103K 
 3: EX-10.2     Material Contract                                      9     32K 
 4: EX-10.3     Material Contract                                      5     21K 
 5: EX-99       Miscellaneous Exhibit                                  2     13K 

EX-99   ·   Miscellaneous Exhibit

EX-99
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                                                                          EX. 99

Sale of BC Sports October 2002                                                  

CONTACTS:  James A. Smith                      Gary S. Maier                    
          Chief Financial Officer             Senior Vice President, Principal
Electronics Boutique Holdings Corp. PondelWilkinson MS&L  
(610) 430-8100                      (310) 207-9300        

ELECTRONICS BOUTIQUE ENTERS INTO AGREEMENT TO SELL BC SPORTS            
COLLECTIBLES BUSINESS               

     WEST CHESTER, PA - OCTOBER 10, 2002 - Electronics Boutique Holdings Corp.
(Nasdaq: ELBO) today announced that it has entered into an agreement to sell its
BC Sports Collectibles business to Sports Collectibles Acquisition Corporation  
for $2.2 million in cash and the assumption of lease related liabilities in     
excess of $13 million. The purchaser, Sports Collectibles Acquisition           
Corporation, is owned by the family of James Kim, Chairman of Electronics       
Boutique. The transaction includes the sale of all assets of the business       
including inventory, intellectual property and furniture, fixtures and          
equipment. Transitional services will be provided by Electronics Boutique to    
Sports Collectibles Acquisition Corporation for a six-month period after the    
closing for an additional payment of $300,000 by the purchaser. The closing of  
the transaction is subject to the satisfaction of customary conditions. TM      
Capital Corp. was retained to facilitate the sale, which is expected to close in
November 2002.                                                                  

      In February 2002, Electronics Boutique announced its intention to sell the
BC Sports Collectibles business in order to focus exclusively on its core video 
game business. In connection with this decision, Electronics Boutique recorded a
pre-tax charge of $8.8 million in the fourth fiscal quarter and fiscal year     
ended February 2, 2002, consisting of the write down of fixed assets and        
inventory and estimated lease termination costs for its BC Sports Collectibles  
division. No additional charge is anticipated in connection with the sale of    
assets to Sports Collectibles Acquisition Corporation.                          

It is anticipated that most of the current BC Sports Collectibles   
employees will join Sports Collectibles Acquisition Corporation upon the closing
of the sale.                                                                    

 Mr. Kim has agreed to indemnify Electronics Boutique from any and all
lease obligations associated with the 22 BC Sports Collectibles store locations,
subject to the right of Sports Collectibles Acquisition Corporation to re-assign
two of the leases to Electronics Boutique at any time following two years after 
the closing.                                                                    

EX-99
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     "The board of directors delegated the sale of BC Sports Collectibles to a
committee of the Board of Directors consisting of the three independent         
directors of Electronics Boutique. After a thorough search and the evaluation of
a number of expressions of interest to buy the business, the independent        
committee selected the offer from Sports Collectibles Acquisition Corporation   
based upon the superiority of the purchase price and other terms of the         
transaction, including the protection against future lease obligations being    
provided by Mr. Kim," said Jeffrey Griffiths, President and Chief Executive     
Officer of Electronics Boutique.                                                

  The company is among the world's largest specialty retailers dedicated
exclusively to video game hardware, software and PC entertainment software and  
accessories. The company currently operates 1,030 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. The company operates an e-commerce website at        
www.ebgames.com. Additional company information is available at                 
www.ebholdings.com.                                                             

     This release contains forward-looking statements related to the financial
impact of the sale of the BC Sports Collectibles assets. Forward-looking        
statements refer to expectations, projections other characterizations of future 
events or circumstances and are often identified by the use of words such as    
"may," "will," "expect," "believe," "anticipate," "intend," "could,"            
"estimated," "continue" or comparable terminology. In addition to factors       
specified in the company's recent filings with the Securities and Exchange      
Commission, there are other factors that could cause actual results to          
materially differ from those expressed or implied in such forward-looking       
statements, such as the ability to obtain third party approvals for the sale of 
the BC Sports Collectibles assets. In light of the risks and uncertainties      
inherent in the forward-looking statements, such statements should not be       
regarded as a representation by Electronics Boutique or any other person that   
the projected results, objectives or plans will be achieved. Electronics        
Boutique undertakes no obligation to revise or update the forward-looking       
statements to reflect events or circumstances after the date hereof.            

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2 

Dates Referenced Herein   and   Documents Incorporated By Reference

				Referenced-On Page
This 8-K Filing		Date		First		Last			Other Filings
		2/2/02		1					10-K
Filed On / Filed As Of / For The Period Ended		10/10/02		1
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