GAME Enters Administration, CEO Steps Down, Investor Vultures Circle

[Spectral Jester]

GAME has officially entered into administration. The retailer will now be valued and sold to the highest bidder, even if that means dismantling the business entirely. Around 6000 jobs are under threat.

 

GAME Group PLC has confirmed the move, issuing a statement saying, “Further to our announcements of March 21st, the Board of GAME has completed its discussions with lenders and third parties without resolution, and has therefore today appointed PwC LLP to act as administrators for the Group.”

 

“This decision is taken after careful consideration and ceaseless interrogation of every possible alternative. The Board would like to thank the teams of GAME and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism.”

 

In light of the news, CEO Ian Shepherd has resigned from his role. Speaking in an internal memo [via MCV], Shepherd said, “I’ve said a number of times that the administrator, once appointed, takes charge of the business.”

 

“Having two people try to do that is both confusing and a waste of money. With that in mind, I’ve agreed with Mike [Jarvis, from administrators PwC] that I will step down as CEO and the business immediately – this is my final email to you all.”

 

“I’m sad to confirm that no deal has been done,” Shepherd continued, “and so I have signed the necessary paperwork this morning to allow the appointment of administrators.The process has been finalised, and so Mike Jarvis from PwC takes charge immediately.

 

Shepard also warned staff of the impending changes. “He [Jarvis] will have a lot to do very quickly. Let’s be clear, he will certainly make big changes, both to the store estate and in the office, but will be doing so with a view to creating a trading business that he can attract a buyer for.

 

“As I’ve said before, the business is worth more trading than not. It’s going to be a difficult week for everyone, but the best thing you can all do is support Mike and his team, and do your best to help create the most positive outcome you can.

 

“Mike will be communicating more with all of you today, both face to face where possible and by email, so watch out for that.”

 

Meanwhile, The Telegraph is reporting that the Royal Bank of Scotland, GAME's primary lender, is planning to buy a stake in the company, now that it has passed into administration.

 

The move has confused some as RBS blocked a full bid from OpCapita last week. The bid could have saved GAME. Says The Telegraph, “People familiar with the matter have been left puzzled over why Game’s lenders refused to accept a fully-funded bid from OpCapita last week, which would have prevented it from falling into administration.”

 

The Mall also reports that a bid is expected to be made by US chain Gamestop.

 

 

 

 

Following GAME’s slip into administration earlier today, the retailer’s website has been taken offline and a number of stores have been closed.

 

Visit game.co.uk and you will be greeted by a message from the administrators saying, “We are currently reviewing and processing orders placed on this website.” It continues, “We apologise for any inconvenience this may cause and we hope to be back up and running very soon.”

 

Meanwhile, a number of stores around the country have been instructed to close their doors immediately. It’s estimated that around 300 of the company’s 609 outlets will shut before the end of the day. More will follow unless a buyer is found during the administration process.

 

It should be noted that Gamestation stores are also under threat. GAME Group PLC also owns the specialist retailer.

In light of the news, GAME has issued advice to customers on its Facebook page. The post, entitled “Important news about GAME,” gives the following information:

• No refunds or exchanges will be available from this point, until further notice
  
• If you payed a deposit for a pre-order, that money is now lost. The decision is being reviewed
  
• The use of GAME Reward Cards has been suspended
  
• As have GAME Gift Cards
  
• And GAMEwallet accounts
  
• You can still trade-in software for reward points and to exchange for another item. You cannot trade-in for cash.
  
• Pre-owned hardware trade-ins have been suspended
  
• The “Click and Collect” service has also been suspended
  

The post advises that any consumers with further questions should contact [email protected]

[Lᴜᴋᴇ]

So I have £50 on a card, and around £10 on a reward card. Now completely useless? Great.

This also means Gamestation will be affected. That is a complete bummer.

[Mr Biggles]

So I have £50 on a card, and around £10 on a reward card. Now completely useless? Great.

This also means Gamestation will be affected. That is a complete bummer.

 

 

Should have used it before monday, most people knew this was going to happen bro.

 

Also, the site is down.

[Lᴜᴋᴇ]

Should have used it before monday, most people knew this was going to happen bro.

 

Also, the site is down.

Yeah, I haven't had a chance. I'm just gonna have to hope there is some way of using them.