Troubled video games retailer, Game Group, has filed for administration just hours after shares in the company were suspended.
The company, which has two stores in Kingston, announced it was entering administration this morning (21 March), having failed to secure extra finance and support from its suppliers.
A statement on the Game Group PLC’s website reads: “Further to this morning’s announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business. The board has therefore today filed a notice of intention to appoint an administrator.
In the short term the Board’s intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium.”
After poor sales over the Christmas period, Game were hit with another blow when game suppliers refused to allocate stock to them.
Guildford based EA Games refused to provide stock of its latest high profile release, Mass Effect 3, and Activision, Capcom, Nintendo and Microsoft are among other companies failing to supply all their releases.
David Burroughs, a student from Guildford, said: “If Game went for good it would be fairly tragic. You might be able to grab the games you want online, but nothing quite matches impulse buying a title you have never seen before from your local shop.”
Philip White, a recreational gamer from Fulham, said: “The problem Game is facing is that people can get games at cheaper prices elsewhere. I frequently buy new releases, but I always shop around to get the best price. With that said, it would be strange not to have a specialised game retailer on every high street and it would be missed.”
The gaming specialist has 600 Game stores in the UK, currently with two in Kingston; the first in a prime Bentall Centre location and the second located on Clarence Street, and 6,000 staff are employed across the country.
If the company fails the find a third party buyer or new finance under protection of a moratorium, a significant number of people will find themselves out of work.
The Market for Computer and Video Games reported earlier today that Game staff will be ‘paid what they’ve earned’, and that employees were informed of this decision this morning via email.
If a takeover bid fails, Kingston’s high street, along with many across the country, will be without a specialist games retailer.