MCV has learnt that senior members of the GAME management teams have been told to brace for the possibility of administration.
Senior staff were told at a meeting with CEO Ian Shepherd earlier this week that the chain has approximately two weeks to turn its fortunes around.
However, hope remains that a deal with a potential suitor – namely, US retail rival GameStop – could yet save the company from closure. Whether this would involve a complete buyout or a sale of part of GAME’s international operations cannot be said for certain.
The first step in this process is what has been widely described by consumers and press alike as a Fire Sale at UK GAME stores that kicked off today and has seen stock offered at what are alarmingly low prices.
This is an effort to inject some much-needed cash into the firm and to keep it alive for what could be a valuable few extra days.
However, should a deal with GameStop not be agreed in the coming days then GAME Group is readying a move into administration, possibility with a pre-package acquisition already planned for its would-be suitor.
Whatever the outcome, it is now certain that the sorry saga will soon draw to a close. One way or the other.
When asked by MCV, a GAME spokesperson said that it does not comment on rumour or speculation.
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3 comments
If true, I hope that this is not the way the staff on the ground are finding out. I also hope this doesn't start a knee jerk reaction of ignorant blogs by some of the industry who suffered on the wrong side of the negotiating table at some time and feel they have finally got retribution. Game offered a unique high street experience for gamers which, if we're lucky could be replaced by a similar operator but if not will leave a massive hole. If nothing fills its shoes, then developers/publishers will be working late to find a way to they get their packaged goods in front of the weekly 3 million UK consumers who walked over Games thresholds. I'd like to think that the independents, small accounts and even HMV will pick up the slack but I fear it will be the supermarkets and online retailers who will benefit the most and consequently, welcome to the wild west.
Nick Parker INDUSTRY
0 2Mar 9th 2012 at 4:35PM
I didn't see any alarmingly low prices. They were selling a preowned Spider-Man 3 for £15.
Mark Darkhart STUDENT
0 0Mar 10th 2012 at 12:35AM
It's a bit hit and miss, Mark. There's some shockingly low prices on a lot of good stuff. Put in context being able to buy games less than a month old for £15-20 less than Games original RRP is big news for them.
For older games I picked up FarCry 2, BlazBlue and Bayonetta on ps3 for under a tenner. A week a go that would have been more than double.
Joseph Brown INDUSTRY
0 1Mar 10th 2012 at 5:00PM