Assets Disposal: Court Restrains the Game Stores

The Lagos State High Court sitting at the Tafawa Balewa Square, has granted an injunction restraining Game Discount World (Popularly known as “The Game Stores”) and four others, from shutting down the business and disposing of assets or interests in the Game Stores.

The court, in a December 19, 2022 ruling, further ordered Game Stores and other Respondents to maintain the status quo ante, with regard to the terms of the Sale of Business Agreement.

Earlier this year, there were reports that the Game Stores had concluded a contract for the sale of its business and assets to a Nigerian entity – Xanderwill Limited.

Apparently, the Game Stores is alleged to have attempted resiling from the agreement, when it announced its shutdown and exit from Nigeria on or before 25 December, 2022 without selling the business and assets to Xanderwill Limited.

Following alleged attempts to breach the sale of business agreement with Xanderwill Limited, a dispute was declared and referred to arbitration. Additionally, Xanderwill Limited filed Suit No.: LD/6413GCM/2022 at the High Court of Lagos State, to restrain the Game Stores (the 1st Respondent in the suit)m from engaging in any act that will essentially impact negatively on the pending arbitral proceedings.

Xanderwill Limited’s application for injunction was granted as follows:-

“An Interim Order of Injunction restraining the 1st Respondent or anyone acting through it or by it, from selling, transferring, disposing, converting, charging, divesting the Sale Assets, business as defined in the Sale of Business Agreement executed on 26th April, 2022 and all related (Nigerian SBA) between the Applicants and the 1st – 3rd Respondent, (other than as contemplated/agreed in the Nigerian SBA), or from taking any other action to negate the commercial terms of the Nigerian SBA pending the hearing and determination of the accompanying Originating Motion on Notice.

“An Interim Order of Injunction restraining the 1st-3rd Respondent or anyone acting through or by them from terminating, revoking or cancelling any business licence, permits, lease agreements, etc. with respect to the business and operations of the 1st Respondent in Nigeria.

“An Interim Order of Injunction restraining the 4th Respondent from paying or otherwise making available to the 1st-3rd Respondent the Escrow Agreement executed on or about 26th April, between the Applicants, the 1st-3rd Respondent, and the 4th Respondent, in any manner that will be prejudicial to the Applicants.”

Given the injunctions, the Game Stores is required to comply with the terms of the Sale of Business Agreement to Xanderwill Limited, pending the conclusion of arbitration between the parties.