Game Group goes into administration
Game Group’s stores operate under the Game and Gamestation brands
26 March 2012 Last updated at 11:59
Britain’s biggest video game retailer, Game Group, has gone into administration.
The group employs about 10,000 staff at its 1,300 stores, 609 of which are in the UK and Ireland.
The administrators from PricewaterhouseCoopers said that the retailer had suffered from high fixed costs and an ambitious international expansion.
Its business has been hit by competition from online-only retailers.
“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,” said one of the administrators, Mike Jervis.
“As a result, we are hopeful that a going concern sale of the business is achievable.”
UK and Ireland – 609
France – 197
Spain and Portugal – 288
Sweden, Norway and Denmark – 67
Australia – 95
Czech Republic – 31
Game Group employs 385 staff at its headquarters in Basingstoke in Hampshire, and about 5,100 in its stores in the UK and Ireland.
About another 5,000 staff are employed at Game’s other stores, which are located in France, Spain, Portugal, the Czech Republic, Scandinavia and Australia.
“This decision is taken after careful consideration and ceaseless interrogation of every possible alternative,” Game Group said.
The stores operate under the Game brand, as well as Gamestation.
The company asked for its shares to be suspended last Wednesday and announced it was planning to call in administrators.
It followed confirmation that some suppliers had stopped doing business with the retailer.