Mon, Mar 26, 2012 | 17:04 BST
Game changer: GAME officially enters administration
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.
27 comments
#1
KAP
26/03/12, 11:32 am
Damn.
#2
Robbins
26/03/12, 11:36 am
God Damn it.
#3
Gheritt White
26/03/12, 11:58 am
I reckon it’s only now that GameStop or Wal*Mart will step in and make an offer.
#4
Goffee
26/03/12, 12:17 pm
#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.
#5
Hell-Raiser-85
26/03/12, 12:18 pm
http://www.youtube.com/watch?v=0JOLFMmNoac
#6
thebaron
26/03/12, 12:24 pm
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 ….’
#7
BraveLilCrumpet
26/03/12, 1:41 pm
Looks like the GAME website has now been taken down.
#8
DSB
26/03/12, 1:44 pm
Game over.
(Really, no one got there before me? You suck!)
#9
OrbitMonkey
26/03/12, 1:48 pm
GIGAHERTZ made that joke like a week ago dude…
#10
DSB
26/03/12, 1:50 pm
Yeah, but that was preemptive. This is poignant. The Game is truly over.
Just shut up!
#11
OrbitMonkey
26/03/12, 1:54 pm
#12
Johnny Cullen
26/03/12, 2:09 pm
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.
#13
NeoSquall
26/03/12, 2:15 pm
@9 GIGAHURTZ, maybe.
#14
Johnny Cullen
26/03/12, 2:26 pm
GameStation’s flagship in Birmingham is closed, according to Alex.
#15
LOLshock94
26/03/12, 2:33 pm
johnny man stop deleting me comments you willy
#16
Johnny Cullen
26/03/12, 2:43 pm
I’m not deleting anything: it’s our comments system that’s acting up.
#17
freedoms_stain
26/03/12, 2:48 pm
@16, looks like it’s working perfectly to me.
I’d give it a pay rise.
#18
Gheritt White
26/03/12, 3:16 pm
@ #17 – If I could ‘like’ your comment, I would.
#19
Johnny Cullen
26/03/12, 3:54 pm
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).
#20
GrimRita
26/03/12, 4:27 pm
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
#21
aseddon130
26/03/12, 4:48 pm
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.
#22
drewbles82
26/03/12, 4:48 pm
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.
#23
Johnny Cullen
26/03/12, 4:57 pm
Updated. 277 stores closed, 2104 staff let go by the end of the week.
#24
OrbitMonkey
26/03/12, 5:01 pm
^ ouch
If I was one of the affected staff, I’d be leaving with as much swag as I could carry…
#25
GrimRita
26/03/12, 6:40 pm
@ Johnny – any news if the staff will actually get paid?
#26
sg1974
26/03/12, 7:14 pm
Good luck to anyone losing their job this week. I hope you find alternative employment soon.
#27
Cee
26/03/12, 8:01 pm
@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/