Wednesday, March 21st 2012

GAME Files for Administration

by
btarunr
 Discuss (14 Comments)
UK retail chain GAME, which sells well - games and gaming hardware, with presence in the UK, several European countries, and Australia, filed for administration. The retail chain has been seeing a few harsh months, it was unable to strike distribution deals with Capcom and EA, which contributed to a drop in its share value on the London Stock Exchange.

In a press-release dated today, GAME says "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."
Sources: Game Group PLC, OnLive Spot

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14 Comments on GAME Files for Administration

#1
chaotic_uk
not supprised tbh , they are crap as of late
Posted on Reply
#2
human_error
It's a shame as game own gamestation, so we are effectively losing our high street based second-hand gaming market (I don't count CEX as they're awful). They may have been pricey overall, but you could still get some decent deals from them (plus they fought some publishers like EA from boosting new game prices over £60).
Posted on Reply
#3
Pikey
Yeah this is very unsurprising, Everything I buy is now on Steam or Origin.

I walked into a GAME recently and half the store was preowned games and when the rest of the games are a good deal more than other online retailers what do you expect.

Not to mention I have heard of some of the worst customer service coming from their stores with returns.
Posted on Reply
#4
Kreij
Senior Monkey Moderator
Anyone watching the GAME saga could see this coming for the past couple of months.
There were some rumors floating around that Walmart showed some interest in buying them out, but I think GAME's current debt sits at around $180 million.
Since they've gone into administration, someone will probably buy them on the cheap and the creditors will take a haircut.
Posted on Reply
#5
crow1001
Yep they sucked the last 10 years, won't be missed.
Posted on Reply
#6
Red_Machine
It's not surprising. A Game employee complained to me that their own online store was undercutting them. They just couldn't compete.
Posted on Reply
#7
digibucc
i have never heard of "going into administration" , does that make me dumb?

what exactly does it mean?
Posted on Reply
#8
FreedomEclipse
~Technological Technocrat~
digibucci have never heard of "going into administration" , does that make me dumb?

what exactly does it mean?
As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – an alternative to liquidation – is often known as going into administration. A company in administration is operated by the administrator (as interim chief executive) on behalf of the creditors as a going concern while options are sought short of liquidation. These options include recapitalising the business, selling the business to new owners, or demerging it into elements that can be sold and closing the remainder.
Posted on Reply
#9
digibucc
FreedomEclipseA company in administration is operated by the administrator (as interim chief executive) on behalf of the creditors as a going concern while options are sought short of liquidation.
that makes perfect sense, now. thank you:)

and lol.. it took me a few seconds to get your avvy... :)
Posted on Reply
#10
yogurt_21
FreedomEclipseAs a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – an alternative to liquidation – is often known as going into administration. A company in administration is operated by the administrator (as interim chief executive) on behalf of the creditors as a going concern while options are sought short of liquidation. These options include recapitalising the business, selling the business to new owners, or demerging it into elements that can be sold and closing the remainder.
in other words going into administration in the UK = chapter 11 bankruptsy in the U.S.
Posted on Reply
#11
Completely Bonkers
Red_MachineIt's not surprising. A Game employee complained to me that their own online store was undercutting them. They just couldn't compete.
Think of it the other way round... their online store was competitive. Their bricks and motar was way overpriced and trying to price gouge.

They deserved to fail. They were no "Harrods" of the high-street. TBH I am surprised they lasted so long.
Posted on Reply
#12
zootac
I read this last night and was going two post it.
One the downsides with game in england is when iv bought p.c games from them there have a in shop Policy on p.c games when you by them if you take the game home and take it out the Plastic.
Rapper Sleeve the game come in and you try it out and find it don,t work with your p.c. and take the game back two the store there wont Refund you on the game you Purchase from them.
There Policy is there think you Bought the game and copyied the game and are Returming it.
Posted on Reply
#13
digibucc
yogurt_21in other words going into administration in the UK = chapter 11 bankruptsy in the U.S.
that's what i was thinking - but i thought bankruptcy required you to dissolve the business? or is that why you specified chapter 11?
Posted on Reply
#14
TheoneandonlyMrK
not good but probably inevitable, ive not visited one in a while ,its outside after all:p

id like to say i wish i had gone but consoles arent my thing either so the shop served only as a reminder of the many times i got ripped off by them back in the day for AAA's that they gave me 8 quid for then sold people like me for 30pound something.
Red_Machinenot surprising. A Game employee complained to me that their own online store was undercutting them. They just couldn't compete.
:roll:whaat thats just silly
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