You really think that they'd get this far if it wasn't legal? Of course it is, there is a legal process of responsibilities and sadly, Johnny Customer with his random Gift Card / faulty £14.99 item is down on the priority list, don't blame GAME for this I'm sure if they had the operational funds, you'd get a gift card value / refund; they don't - you don't.
The staff are far more important in this respect, they need paying and since, it potentially could be their last paycheck I totally agree.
It blows my mind that something like this happens and all of a sudden every Tom, Dick & Harry turns into Perry Mason.
They can't refund anything during administration due to every Pound having to be accounted for, the store should have replaced it for you out of goodwill but that's all you're entitled to.
Don't worry, GAME have been bought so panic over, yes?