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Game changer: GAME officially enters administration

Monday, 26th March 2012 11:22 GMT By Johnny Cullen

GAME has failed to find itself a buyer at the eleventh hour despite earlier reports of a potential buy from RBS and, as a result, has entered into administration.

It previously signaled its intent to find an administrator last week.

Mike Jervis and Stuart Maddison of PWC have been appointed joint-administrators of the UK and Irish arm of the retailer. In a statement, it said there was still room for a specialist chain on the high street.

“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,” said Jervis.

“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.”

In its appointment of PWC, GAME’s board of directors went on record to thank its staff.

“The Board would like to thank the teams of GAME and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism.”

CEO Ian Shepherd has also stood down as of immediate effect to make way for Jervis, according to an internal memo gathered by MCV.

“I’ve said a number of times that the administrator, once appointed, takes charge of the business,” he said.

“Having two people try to do that is both confusing and a waste of money. With that in mind, I’ve agreed with Mike that I will step down as CEO and the business immediately – this is my final email to you all.

“I’m sad to confirm that no deal has been done, and so I have signed the necessary paperwork this morning to allow the appointment of administrators. The process has been finalised, and so Mike Jarvis from PwC takes charge immediately.”

Shepherd has also warned of massive changes in the short-term future, including the closing of stores.

“Let’s be clear, he will certainly make big changes, both to the store estate and in the office, but will be doing so with a view to creating a trading business that he can attract a buyer for.”

GAME has since suspended usage of its Reward Cards, gift-cards and the trading-in of hardware. Software is currently being accepted, but consumers will only get credit and not cash.

Store closures are also popping up all over Twitter, with VG247 contributor Alex Donaldson also reporting that GameStation’s flagship store in Birmingham has also been closed.

Reports have also been circling that Irish stores are also closing, but VG247 can verify that at least one Northern Irish store, in Derry, is still open.

We send our best wishes to those affected.

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27 Comments

  1. KAP

    Damn.

    #1 2 years ago
  2. Robbins

    God Damn it.

    #2 2 years ago
  3. Gheritt White

    I reckon it’s only now that GameStop or Wal*Mart will step in and make an offer.

    #3 2 years ago
  4. Goffee

    #3 – Now its properly in administration, the company can be sold off pretty cheap and without the huge debts, so I’m pretty confident someone will pick it up.

    #4 2 years ago
  5. Hell-Raiser-85

    http://www.youtube.com/watch?v=0JOLFMmNoac

    #5 2 years ago
  6. thebaron

    Bugger! I suppose this means that pre-owned XBOX elite I bought 2 weeks ago from Gamestation, that has just broken is basically bin-fodder. I can’t believe they even sold it – it had been repaired at least 4 times previously!! (everyone knows that if an XBOX360 has been repaired once and breaks again then it’s basically fooked)…. dammmit
    It should’ve been advertised as ‘Pre-owned , repaired, broken ,repaired , broken , repaired, dropped , repaired ….’

    #6 2 years ago
  7. BraveLilCrumpet

    Looks like the GAME website has now been taken down.

    #7 2 years ago
  8. DSB

    Game over.

    (Really, no one got there before me? You suck!)

    #8 2 years ago
  9. OrbitMonkey

    GIGAHERTZ made that joke like a week ago dude…

    #9 2 years ago
  10. DSB

    Yeah, but that was preemptive. This is poignant. The Game is truly over.

    Just shut up!

    #10 2 years ago
  11. OrbitMonkey

    :-P

    #11 2 years ago
  12. Johnny Cullen

    We’ve all known of that stupid joke for weeks. I’ve just refused to run with it in a strapline because it’s so stupid and actually makes me sick.

    #12 2 years ago
  13. NeoSquall

    @9 GIGAHURTZ, maybe.

    #13 2 years ago
  14. Johnny Cullen

    GameStation’s flagship in Birmingham is closed, according to Alex.

    #14 2 years ago
  15. LOLshock94

    johnny man stop deleting me comments you willy

    #15 2 years ago
  16. Johnny Cullen

    I’m not deleting anything: it’s our comments system that’s acting up.

    #16 2 years ago
  17. freedoms_stain

    @16, looks like it’s working perfectly to me.

    I’d give it a pay rise.

    #17 2 years ago
  18. Gheritt White

    @ #17 – If I could ‘like’ your comment, I would.

    #18 2 years ago
  19. Johnny Cullen

    My local store’s open, which seems to counter the stuff about Irish stores closing (or at the very least, a mixup and that Southern stores are closed).

    #19 2 years ago
  20. GrimRita

    With any luck someone will step in and save them now. You have to be a total idiot to step in and save them before hand with a board full of over paid, useless pricks

    #20 2 years ago
  21. aseddon130

    the Gamestation store in Wigan has closed down and the website has gone down too, goodbye to all it’s a bit of a shame but at the end of the day, you were sort-of robbing bastards with trade-ins.

    oh wells.

    #21 2 years ago
  22. drewbles82

    Redditch stores still open. Tried to use my gift card, machine was down so refused to pay till they sorted it so back tomorrow. Wanna be there when they hopefully have closing day sale.

    #22 2 years ago
  23. Johnny Cullen

    Updated. 277 stores closed, 2104 staff let go by the end of the week.

    #23 2 years ago
  24. OrbitMonkey

    ^ ouch :-(

    If I was one of the affected staff, I’d be leaving with as much swag as I could carry…

    #24 2 years ago
  25. GrimRita

    @ Johnny – any news if the staff will actually get paid?

    #25 2 years ago
  26. sg1974

    Good luck to anyone losing their job this week. I hope you find alternative employment soon.

    #26 2 years ago
  27. Cee

    @25 I’m not Johnny but

    “Last week, administrators won a 10-day window of protection from creditors, which allowed Game to miss its £21m quarterly rent payment to landlords. There is also a £12m wage bill, £10m in VAT and £40m owed to suppliers.”

    http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/9167638/Game-to-shut-277-UK-stores-and-cut-2100-jobs.html

    also a big list of stores affected on this MCV page
    http://www.mcvuk.com/news/read/store-closures-begin-at-game-and-gamestation/

    #27 2 years ago

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