GAME goes into administration
Posted: Mon Mar 26, 2012 1:54 pm
DealSpwn.com wrote:After weeks of uncertainty, the hammer has fallen, and the GAME Group has officially gone into administration as of today.
The statement issued by PwC acknowledges that 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."
“Despite these challenges," continued Mike Jervis, joint administrator and partner at PwC 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.”
Nonetheless, the likelihood of store closures and job losses remains high, though PwC are yet to confirm such a course of action.
The full statement can be found below:
Mike Jervis and Stuart Maddison of PwC were appointed joint administrators of the UK and Ireland operations of The GAME Group plc, Game Stores Group Limited, Gameplay (GB) Limited, Game (Stores) Limited, Games Station Limited, Game (retail) Limited, Gamestation Limited (“the group”) on 26 March 2012. The appointment was made following the company’s announcements on 21 March that the listing of its securities on the Main Market of London Stock Exchange plc had been suspended from trading and a filing of a notice of intention to appoint an administrator had been made.
The group, with a turnover of £1,625m in the year to 31 January, is a multi-channel retailer of video games and video games hardware trading under the names of Game and Gamestation. The group’s head office is based in Basingstoke with operations in the UK and Ireland, Spain, Portugal, France, Czech Republic and Australia. There are currently 609 stores throughout the UK and Ireland. There are 385 employees based in the group’s head office in Basingstoke and 5,136 store employees across the UK and Ireland.
Mike Jervis, joint administrator and partner at PwC said:
“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.
“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.”
And they're freezing reward cards immediately;
DealSpwn.com wrote:With news pouring in of a number of GAME store closures across the country in the wake of today's administration announcement, the company have also proceeded to freeze Reward and Gift Card use, with refunds and exchanges also unavailable.
"We are reviewing this over the next week," GAME said, responding to the freeze on loyalty and gift cards with apologies.
Reward Points can still be earned in open stores, but customers will not be able to redeem their points "until further notice".
Furthermore, "the value on [Gift Cards] cannot be redeemed. If this changes, we will let you know. We apologise for the inconvenience this causes."
Trade-ins for cash, and refunds have all been suspended at this time as the PwC administrators look to restructure in the hopes of a swift sale.
You can find the full list of important notices below, courtesy of the GAME Facebook page:
1.Online Sales: We expect some disruption to our online services over the next few days while we make some changes. We apologise for the inconvenience this causes.
2.Refunds and Exchanges: Until further notice, we will not be able to offer refunds or exchanges for products purchased either before the administration or for products purchased from the date of the administration.
3.Pre-Orders: No new pre-orders can be taken until further notice. No refunds can be given for any pre-order deposits which have been paid. We are reviewing this over the next week.
4.GAME Reward card: We have had to suspended use of GAME Reward Cards. This means that points can be earned but NOT redeemed until further notice.
5.Gift cards: We have also had to suspend GAME gift cards. The value on these cards cannot be redeemed. If this changes, we will let you know. We apologise for the inconvenience this causes.
6.GAMEWallet: the value stored in GAMEwallet accounts will be suspended until further notice following the appointment of administrators.
7.Pre-owned Software: You can still buy pre owned products at great prices in your local store or online. If you trade in a pre-owned software item then you will still be able to accrue reward points and use your trade in to exchange for another item. You will not be able to trade in pre-owned software for cash. If this changes, we will let you know. We apologise for the inconvenience this causes.
8.Pre-owned Hardware: We have had to suspend trade in for pre-owned hardware at this time. If this changes, we will let you know. We apologise for the inconvenience this causes.
9.Click and Collect titles: We have had to suspend this service. We apologise for any inconvenience this causes.
