Aren't they the UK's biggest distributor?

It's due to their credit insurance. As it's been cut suppliers will be asking a higher price for their products and/or reduced credit terms which will not help with Games finances. If they accept they will make far less profit margin to cover it's costs or it will need to pass this costs on to the consumer. A higher cost will put off people spending their money there. Obviously not stocking new major titles will also effect its cash flow. consumers will go else where. The last Story is available on both Amazon.co.uk and Zavvi.com. So the impact on it's sales should be limited

Well it's certainly not going to help, but any first week buyers like myself will probably just get it from someone else when they're told their preorders have been cancelled and as for legs, if GAME had that much foot traffic one would assume they wouldn't be in this situation in the first place so overall I think the sales effect on TLS will be minimal. It'll have a much greater affect on GAME as a company than TLS.

Just took a look at Eurogamer and what the hell is going on with these guys.

Does Vgchartz take into account sales through venues like Amazon.co.uk and Zavvi.com though? Were these counted among the game's 5-6k first week UK sales?