Game has called in the Administrators

[blueball]

http://www.bbc.co.uk/news/business-17455742

[dave87]

Sadly all too predictable once the news of it's discussions with EA came out.

At least they are looking to appoint Administrators (hence with a view to sale as a going concern) rather than Liquidation - there may be some hope yet. That said, I would think a large degree of restructuring would be inherent in any rescue package which will, inevitably, involve at least some redundancies. It simply isn't profitable as it is currently structured.

[jim]

Least surprising event of the year. I hope they pull through but I can't see it.

[Bagnaj97]

I can't see them surviving this, unless the administrators are miracle workers. Almost the entire target audience of Game are tech literate, at least enough to shop online. For the small percentage of customers that can't or wont shop online there's fierce competition from the supermarkets.

I can see them going the way of Woolworths very soon, someone (Amazon/Play/The Hut group etc) buying the rights to the brand and keeping the online part going, but no more shops. Fingers crossed for a flood of cheap liquidated stock when this happens!

[shaithis]

The bit about there still being room for a large high-street games retailer........I just do not know.

What with HMV, Tesco and ASDA....and now the BT infinity roll-out is picking up steam.....then add in the latest rumours about XBox 720.....and I think that I really would not want to invest any money in the idea!

[Terbinator]

The bit about there still being room for a large high-street games retailer........I just do not know.

What with HMV, Tesco and ASDA....and now the BT infinity roll-out is picking up steam.....then add in the latest rumours about XBox 720.....and I think that I really would not want to invest any money in the idea!

Hurrrrrrr.

[dave87]

I can see them going the way of Woolworths very soon, someone (Amazon/Play/The Hut group etc) buying the rights to the brand and keeping the online part going, but no more shops. Fingers crossed for a flood of cheap liquidated stock when this happens!

My expectation is the Administrators will resell whatever stock they can to other competitors to provide cash flow for the business, it'll be the unsaleable or less saleable items (pre-owned consoles etc) which they'll shift through the branches I would imagine, but they'll seek to retain the profit from it - so don't expect a large amount of low prices.

If it gets to Liquidation, then it may be a possibility, but I'm guessing the most desirable stuff will be long gone by then.

[Barrichello]

Have only ever been into a GAME shop once many years back and didn't like it. Remember being accosted by staff to join some reward scheme, and seeing the high prices there as well, never went back. As sad as it is for the staff im surprised it has lasted this long.

[IronWarrior]

I can't see them surviving this, unless the administrators are miracle workers. Almost the entire target audience of Game are tech literate, at least enough to shop online. For the small percentage of customers that can't or wont shop online there's fierce competition from the supermarkets.

I can see them going the way of Woolworths very soon, someone (Amazon/Play/The Hut group etc) buying the rights to the brand and keeping the online part going, but no more shops. Fingers crossed for a flood of cheap liquidated stock when this happens!

Small percentage? You do know that 70% of games brought in the UK is from retail right? Also, how can you say that their entire target audience of Game are Tech literate? Their customer base is mostly kids.

They already have a sale going on now at crazy prices, saw limited edition games that used to cost £60+ on sale for under £2...

In the end, they shouldn't had expanded so fast, if they wish to remain on the high street, then they need to downsize.

[shaithis]

Small percentage? You do know that 70% of games brought in the UK is from retail right?

Are they? I would love to see the break-down on those figures.....especially seeing them take into account European/US/Asian licenses being sold to the UK.

[Rob_B]

I'm tech literate, if prices were reasonable (I don't expect them to mathc online exactly) then I'd shop at GAME/Gamestation/etc - but they're usually not, so I don't.

I'd LOVE them to pull through and undertake a massive change of direction OR someone else to step into the hole made if they go under and I can buy my games from a shop again, I just don't see it though

[IronWarrior]

Are they? I would love to see the break-down on those figures.....especially seeing them take into account European/US/Asian licenses being sold to the UK.

That what the BBC says:

But he added that there was still a place for a large specialist games retailer on the High Street, with 70% of spend on games content in the UK still in the form of physical media.

http://www.bbc.co.uk/news/business-17455742

[Bagnaj97]

That's physical media, not retail sales - amazon, play, zavvi etc sell physical media online.

As for most of Game's customers being kids, I suspect the true customers are the parents as they're the ones with the money!

[jonathan_phang]

With the GAME group heading down, does this mean that the extended warranty with my 360 and also second hand PS3 are worthless/possibly wont be honoured? I haven't got the documentation to hand, but only thought about it recently. Both were bought in Gamestation stores, which I believe are part of the group, and I guess it depends on who the liability is with? ie. If its a separate 3rd party? Not really sure, but my money is on it all going bust when the group dissapears

[Andy3536]

In the town near me Game had a 2 shops probably near 300 yards apart for a good few years.

Any company run on such stupidity is always gonna be in trouble.
Always found them to be expencive and even the 2nd hand games well over priced.

[Grey M@a]

With the GAME group heading down, does this mean that the extended warranty with my 360 and also second hand PS3 are worthless/possibly wont be honoured? I haven't got the documentation to hand, but only thought about it recently. Both were bought in Gamestation stores, which I believe are part of the group, and I guess it depends on who the liability is with? ie. If its a separate 3rd party? Not really sure, but my money is on it all going bust when the group dissapears

From memory, you had to deal with the insurance through the store who sent it off for you, so if they go you may find your 3rd party warranty will go with them. You may get lucky with the underwriters of the policy. It's one thing that hasn't been mentioned as yet.