GAME, Britain’s biggest video game retailer, has gone into administration today.
The retailer counts around 1.300 stores distributed between the UK and mainland Europe, 5.100 employees in the UK and Ireland, of which 385 are employed at its headquarters in Basingstoke, Hampshire.
In Edinburgh, Gamestation on Princes Street, the flagship store of the company, had already been closed in late 2011.
However, as the retailers are refusing to release any comments, it’s understood that the GAME stores in St. James Shopping centre and Ocean Terminal are still open as usual.
Meanwhile, it has already been reported that about half of the 600 UK shops have been closed during the day, and it’s unclear whether the rest will stay in business.
The company’s website is currently no longer accessible, and it names MJA Jervis and SD Maddison as the appointed Joint Administrators.
Mike Jervis has commented: “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”.
GAME, which was founded in 1991 as Rhino Group, had already been rumoured to be in troubled waters as their credit worthiness came under scrutiny just a few days ago.
As a consequence, three main suppliers, Nintendo, EA and Capcom, blocked the distribution of their most recent releases to the retailer.
The overall performance of the company in the last few months has been abysmal, with a £18 million loss for the year to 31 January being blamed on high fixed costs and an ambitious international expansion.