UPDATE: GAME and Gamestation Stores Set for Administration?
It’s looking like sad news is coming for GAME and Gamestation staff in the coming weeks, as the high street video game retailers are looking set to face the administrators in the coming months unless a last minute sale can save the day.
More than 10,000 jobs may be lost as the UK’s biggest game retailer is suffering from a collection of changes in game purchasing habits and poor Christmas and recent sales figures. The GAME group consists of high-street shops GAME and Gamestation stores and provides one of the last specialist places on the high-street to peruse, purchase and exchange games for the average gaming fan.
Trade website MCV has reported that senior staff were told in a meeting with CEO Ian Shepherd earlier this week about the state of affairs. Its reported that the failing company has just two weeks to sort out its affairs, and the staff of GAME’s only hope is that its U.S rival Gamestop is to buy out the stores and save thousands of staff and the high-street gaming inclusion.
Last week in the Gaming Weekly we reported that GAME and Gamestation are currently in the midst of a “Fire-Sale” in both store’s branches, where the retail chains are looking to shift some of their excess stock of pre-owned games by selling at cut prices and discount rates.
The news all comes weeks after it was announced that the GAME group was also to NOT stock last week’s release of the latest in the Mass Effect franchise, Mass Effect 3, which would now appear to be due to financial worries.
With a big year for gaming coming our way it would be a shame to see one of the high street’s more enduring shops taken off the map, and we for one hope that a Gamestop purchase can be arranged.
UPDATE: GAME has now admitted that several of its key suppliers have refused to send stock to both GAME and Gamestation stores. Although it hasn’t confirmed exactly which suppliers are refusing to send stock, we already know that EA Games is one of them, after they couldn’t come to an agreement with GAME to stock the latest title Mass Effect 3.
The company’s shares have plummeted in price by as much as 55%, with some analysts predicting that the company will be unable to pay rent for its stores nationwide.