UK specialist retailer GAME enters administration

The well known UK brick and mortar game specialist retailer GAME has not been able to find a solution to its current financial problems. Today, the retailer's parent company GAME Group officially announced that there was only one option available. In a statement, the company said:

Further to this morning's announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business. The board has therefore today filed a notice of intention to appoint an administrator.

The company added in an earlier press release that in the opinion of the GAME Group's board, it "considers itself to be unable to assess the business's financial position, and is of the opinion that there is no equity value left in the Group."

The retailer, which operates over 600 stores in the UK under the GAME and Gamestation brands, has been under financial pressure for the past few months. Several weeks ago, it was revealed that GAME was unable to stock new game releases such as Mass Effect 3 due to publishers being afraid that the retailer would not be able to pay back its obligations to those publishers.

Gamesindustry International reports that the GAME Group currently has over £180 million worth of debt. The administrator in charge of GAME Group will now attempt to sell off the company's assets. However, it is expected that no matter what kind of deal is made, over half of the company's stores will close.

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13 Comments

Jdawg683 said,
what does this mean? like filing for bankruptcy protection?

As I understand it (although IANAL), when a company goes into administration a third-party company steps in and takes control of the company, and go over the balance sheets making massive cuts and staff layoffs. In some circumstances this can bring a company back from the brink and make them financially viable again, and in other circumstances they sell every single company asset off (down to the shelving in the stores) in an effort to recoup their losses, and then kill the company.

Bets thing they can do is sell the Game station brand off to some one who will keep it going since its by far the better of the two brands by bloody loads.

Fubar said,
Bets thing they can do is sell the Game station brand off to some one who will keep it going since its by far the better of the two brands by bloody loads.

Hear hear! The only better things about it though are the staff and the general atmosphere; their prices are exactly the same as GAME, just in my case down here, they've got a smaller selection, due to the local Gamestation store being smaller than both GAME stores here in Plymouth. I won't be surprised to see one of them shut down soon, as the two are less than a five minute walk away from each other. There also used to be a small one in Debenhams here too, which was less than a minute away from one of the main stores, but that got shut down years ago.

I prefer to shop at Gamestation over Game any day, general look and feel appeals to me more than the cold, dull Game stores.

Wilko said,
I prefer to shop at Gamestation over Game any day, general look and feel appeals to me more than the cold, dull Game stores.

They're both the same company, so they're likely to both disappear.

Well, that's going to suck for my home town. Only decent place to physically shop for games now after Game and Gamestation have gone will be HMV, and their game selection is absolutely pants.

Also, I'm going to miss going into a store and buying a console - I know there's a premium to pay but there's a great feeling of walking into a store, paying for a brand new machine and walking out a proud new owner. Similar feeling to buying a CD vs. downloading some tracks off of iTunes, I guess.

Alas.

NB, GAME have been absolutely **** in terms of management for more years then I care to remember. Worked for them back in 2008 in one of their concession stores (It was a Debenhams one) and HR told my manager to hire 6 people, and then announced they only had like 50 hours a week to give to all 6 people. Retards. Hell, their Assistant Managers in some stores only got like 16 hour weeks after a while. Utter joke.

SK[ said,]Sad day for the high street.

The sad day for the high street was when Game first opened their stores. They have absolutely detestable business practises they should be ashamed of.

Ripping off both consumers (sometimes games cost £10+ more there than anywhere else) and game companies (using their high street dominance to force a lower wholesale price). They also strong-arm customers at the checkout with a new game in hand to buy a used game instead, thereby increasing their own profit margins and depriving the games companies of a sale. Hardly surprising then that the games companies left them out to dry and wouldn't sell them any games once there was even the slightest risk of not getting their money back.

Good riddance.

feel bad for those who are employed as retail staff in GAME stores. i wonder what will replace that soon to be Empty retail unit in town. god please not let it be another £1 store or what ever else they want to name it.

I wonder how long it will take to blame Piracy for there misfortune. Being lousy at the job of selling software, well, its not there fault is it?

More console games selling at retail for 50-60 quid. No wonder people flock to amazon.co.uk
I myself being one of them. I used to walk into GAME store and then compare online prices. There was huge discrepancy.

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