Login | Signup

GAME Enters Administration

Author:
Matt Gardner
Category:
News
Tags:
GAME, GAME Group, Gameplay, Gamestation, High street, UK retail

GAME Enters Administration

After weeks of uncertainty, the hammer has fallen, and the GAME Group has officially gone into administration as of today.

The statement issued by PwC acknowledges that the "group has faced serious cashflow and profit issues over the recent past. It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements."

“Despite these challenges," continued Mike Jervis, joint administrator and partner at PwC we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one, the UK. As a result we are hopeful that a going concern sale of the business is achievable.”

Nonetheless, the likelihood of store closures and job losses remains high, though PwC are yet to confirm such a course of action.

The full statement can be found below:

Mike Jervis and Stuart Maddison of PwC were appointed joint administrators of the UK and Ireland operations of The GAME Group plc, Game Stores Group Limited, Gameplay (GB) Limited, Game (Stores) Limited, Games Station Limited, Game (retail) Limited, Gamestation Limited (“the group”) on 26 March 2012. The appointment was made following the company’s announcements on 21 March that the listing of its securities on the Main Market of London Stock Exchange plc had been suspended from trading and a filing of a notice of intention to appoint an administrator had been made.

The group, with a turnover of £1,625m in the year to 31 January, is a multi-channel retailer of video games and video games hardware trading under the names of Game and Gamestation. The group’s head office is based in Basingstoke with operations in the UK and Ireland, Spain, Portugal, France, Czech Republic and Australia. There are currently 609 stores throughout the UK and Ireland. There are 385 employees based in the group’s head office in Basingstoke and 5,136 store employees across the UK and Ireland.

Mike Jervis, joint administrator and partner at PwC said:

“The group has faced serious cashflow and profit issues over the recent past. It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.

“Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one, the UK. As a result we are hopeful that a going concern sale of the business is achievable.”

Thanks, MCV.

Add a comment3 comments
gunnx  Mar. 26, 2012 at 11:56

I don't mind if there are no physical stores but I hope that retail will still thrive online, I definitely do not want digital distribution to be the only channel.
Its a bit of nostalgia for me going into a games store, as before the internet and demos, you'd spend ages pouring over game covers and make basically a random purchase. Nowadays though, with indepth reviews, large demos, previews, online videos/playthroughs, I'm much more selective with what I purchase and I've no reason to visit an actual store. I guess those who trade in will miss it but you can also trade-in online.

Anarchist  Mar. 26, 2012 at 12:08

[quote]Its a bit of nostalgia for me going into a games store, as before the internet and demos, you'd spend ages pouring over game covers and make basically a random purchase. [quote]

I still do that :\

gunnx  Mar. 26, 2012 at 12:19

[quote]Its a bit of nostalgia for me going into a games store, as before the internet and demos, you'd spend ages pouring over game covers and make basically a random purchase. [quote]

I still do that :\



that's not a bad thing at all. I used to find that part of the enjoyment of gaming specially when you find something you really like.

Email Address:

You don't need an account to comment. Just enter your email address. We'll keep it private.