The GAME Group has gone into administration Photo:
Around 5,500 employees across the UK who work for the video games retailer 'GAME' face losing their jobs after the Hampshire-based firm went into administration on Monday.
The GAME Group employs 385 people at its headquarters in Basingstoke, with another 5,100 employees across the country in 'Game' and 'Gamestation' stores. The firm has a global reach and on its website claims to be 'Europe's leading specialist pc and video games retailer', with more than 1,300 stores worldwide and around 10,000 employees across the world.
PwC has been appointed administrator to the GAME Group's UK arm which consists of 609 stores. PwC said it is hopeful that 'Game' can be sold.
It is believed that there are three potential bidders including a consortium of banks led by the state-backed Royal Bank of Scotland; Game's American rival which is called 'Gamestop'; and OpCapita, which recently bought the electrical goods firm 'Comet'.
A message posted on the firm's website said that MJA Jervis and SD Maddison had been appointed as joint administrators of The GAME Group plc on 26th March 2012. The insolvency practitioners will manage the GAME Group's'affairs, business and property as their agents and without personal liability.'
The statement continues with a message for customers saying orders placed on the website were being reviewed and processed.
The GAME Group has had trading problems in recent months, and some of its suppliers had refused to stock the retailer with new products as its worsening finances came under increasing scrutiny.
The GAME Group has more than 1,300 stores worldwide Credit: GAME Group plc promotional material
"The (GAME) 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."
– MIKE JERVIS, JOINT ADMINISTRATOR & PARTNER AT PWC