GAME, U.K.'s largest games retail business, has officially announced that it will be going into administration.
The U.K. retailer sells and trades video games as Game and Gamestation stores. After months of low trading and refusal from suppliers for top hit game titles such as Mass Effect 3, the company may close over 600 stores and laying off thousands of employees. Game has over 10,000 employees with 1,270 store locations in Europe and Australia.
Messages such as "down for maintenance, and "currently reviewing and processing orders placed on this website" can be seen on the GAME's official website.
Administrator and partner at PwC, Mike Jervis, spoke about the current dilemma.
"The group has faced serious cash flow 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," said Jervis.
There still may be hope for GAME as a buyout from The Royal Bank of Scotland is currently in the works. It is estimated that $135 million will be needed to rescue the company. GAME failed to come up with $52 million by its March 25 deadline to pay for bills and staff.
"The recent job losses are regrettable but will place the company in a stronger position while we explore opportunities to conclude a sale.
"My team and I will be doing all we can to help the affected employees at this difficult time," said Jervis.
