Troubled UK retailer Game Group today officially announced it was entering administration. Buyout talks have fallen through, leaving no other choice for the company.
Mike Jervis and Stuart Maddison of PWC have been appointed joint-administrators for the retailer, covering its Irish branch too.
Said Jervis of the appointment: “The 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.”
Meanwhile the company itself had this to say: “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.”
Where things go from here we’ll just have to wait and see.