Game Group, which went into administration this morning, has announced that it is to close 277 stores with the loss of 2100 jobs. The company had been trying to thrash out a deal to save the whole business over the weekend after the company filed a notice to appoint administrators last week. When the sale fell through the business had little choice but to go ahead with the administration. The administrators have said that they will concentrate on trying to sell the remaining 333 stores.
The Royal Bank of Scotland is trying to put a rescue package together with the other lenders but as always it seems strange that a public owned bank might be the majority owner of a video games business.
The writing has been on the wall with regard to Game Group and many people appear to have been waiting for the inevitable. First of all, the firm had a terrible Christmas trading period, then suppliers refused to supply, the company announced an intention to appoint, a rescue or sale was mooted and then the deal failed. This failure also has striking similarities to the collapse of Woolworths in 2008. The staff appeared to have been left a little in the dark which may lead to some morale problems making the sale of the remaining stores more problematic.
If you are an employee of Game Group please refer to our help for employees pages