The Daily Telegraph
has reported that main video game retailer on the British high street and shopping malls, Game, has gone into administration. The announcement was made by the administrator, the accountancy firm PricewaterhouseCoopers.
The administration order applies to the parent company, Game Group. However, this means that the 277 stores, out of total of 609, in the UK and Ireland will close. The move also means that some 2,104 employees will be made redundant.
Quoted on CNET
, Mike Jervis of PricewaterhouseCoopers, said "The recent job losses are regrettable, but will place the company in a stronger position while we explore opportunities to conclude a sale."
This follows the move last week where the company’s shares were suspended
, which in turn was the result of many big suppliers of video games taking the decision to cease business with the retailer.
According to the BBC
, the remaining 333 stores will stay open as the administrator’s searches for a buyer. One of the favored buyers is the US group Gamestop
The stores that will close and the stores that will stay open have yet to be identified. The group trades under the brands ‘Game’ and ‘Gamestation’. The group's website
is currently off-line, with the message "GAME.co.uk is down for maintenance".
Game also had a number of stores across Europe including 197 in France, and 288 in Spain. The group’s headquarters are in the UK town of Basingstoke.
Although some stores are to stay open in the short term, all gift cards have been declared null and cannot be redeemed.
Game has suffered from high fixed costs, an ambitious expansion plan and competition from on-line retailers like Amazon.