GAME Group enters its final day
Sources claim that GAME Group will be entering into administration later today, if an investment bid by RBS fails.
GAME Group, which runs the high-street brands Gamestation and GAME, has been in trouble for months. A slow Christmas period meant financial troubles, and its problems have mounted since with publisher after publisher refusing to provide new-release titles for sale.
Things are about to come to a head, however. The company is thought to have but days left to make repayments to its lenders and simultaneously meet the rent on its high-street properties - and it simply doesn't have the money to make that happen.
Accordingly, the GAME Group board suspended its shares on the London Stock Exchange last week, stating that it saw 'no equity value left in the company.' This announcement was swiftly followed by the news that the company is heading into involuntary administration.
Should GAME Group enter into administration, it would be dark times for its staff. With so many debts to its name, an administrator would likely force a stock sell-off followed by closure of its retail stores in order to satisfy debts. The best GAME Group could hope for would be the continuation of one of its web-based retail arms.
There is a glimmer of hope on the horizon, however: the Telegraph and the Sunday Times both report that a consortium of investors led by banking giant RBS is planning to sink some cash into the beleaguered company in the hopes of saving it from the scrapheap.
RBS has a good reason to try to save the company: along with six other lenders, it's one of the banks to which GAME Group owes an estimated £100 million - money the bank probably wouldn't see should the administrators be called in.
The deal isn't guaranteed, however. Sources speaking to Sky News claim that investment will not be forthcoming before administrators are appointed later today, with RBS looking to purchase a 'slimmed-down version of the group' from the administrator. If true, that spells dark times ahead for the company's employees.
UPDATE:
Administrators have been appointed, spelling the end of the GAME Group as we now know it. 'Further to our announcements of 21 March, the Board of GAME has completed its discussions with lenders and third parties without resolution, and has therefore today appointed PWC [PriceWaterhouseCoopers] LLP to act as administrators for the Group,' the company has confirmed in a statement to press. '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.'
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Discuss in the forums ReplyIts a shame, I certainly wouldn't want to be unemployed in this climate but a shop assistant is a shop assistant, game never kept to any standard of knowledge to their employees and so they failed to make the experience worth anything over amazon etc. As for the management etc they clearly failed each other.
Of course it is not fair to see people put out of work, but blame the management at the top of the GAME group for lining their pockets and ripping off the public.
It's pretty obvious the only business model they followed was what makes them cash, once they've milked it, just shut the company down and walk away.
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That is an extremely short sighted statement. So we should all shop at the most expensive, often badly lit, smelly, hot stores just so that they can keep trading exactly how they want, to save 6000 low paid, unskilled jobs? I hope you had the same level of outrage when nurses, firemen, police and the armed forces were made redundant on numerous occasions.
Many of the reasons that our economy, and Game themselves, are in such a bad state is that they got comfortable doing the same crap that they did back in the 1990s. It is of course always sad when people lose jobs, being on the receiving end of it a couple of times myself, but in this instance, I can feel no sympathy for the company.
Game over
Towards the late nineties their PC selection started getting poorer, and this whole interweb doohickey was really taking off. By the time I could afford my own broadband connection in 2001, I rarely bought anything in store anymore, since it was much cheaper online. Added to that, I was older and much more aware of how little their staff actually knew about games, consoles, PCs, or the industry in general.
By the time the 360 came out, the PC selection in local GAME stores was relegated to one sad little shelving unit at the back of the store, and most of those were occupied by WoW boxes. Not only that, but selection of titles for all formats was becoming poorer, with very little new stock brought in. More and more frequently you would be asked if you had pre-ordered when enquiring about a new release, with no guarantees that they would be getting in more than those ordered.
With the selection so poor, and no added value from staff knowledge, there was less and less reason to visit the retailer except to rummage in the bargain bin, but even then you'd rarely find anything cheaper than the deals online. Their profiteering led to them stocking mainly pre-owned titles, which I personally have no interest in purchasing, especially since they were rarely much cheaper than a new copy.
The brand, GAME, holds a fair bit of nostalgia for me, but I have no real attachment to Game Group, plc. as they operate today.
I wish their many staff (around 10,000 across europe) all the best through what will be a tough time.
Look at Apple, the only reason they have retail stores is to increase the lust factor. They want the touchy-feely effect to increase demand. It works... if you have the products.
But for computer games? What could retail have to offer that's fresh? Mini LAN parties? Tournaments? OTT tri-screen rigs to play on? Motion control rigs? 3D? Guest pro-gamers? A DJ in the corner?
All could be done for the added bling factor but would they bring in the money?
Nope.
Bye bye retail. Like the 1980's you're time has been and gone.
They simply couldn't compete with e-tailer prices, I reckon their main pricing strategy was to rely on big event lauches and non-tech savvy people who were buying things for realitives/kid/friends and either had to have something specific "RIGHT NOW" or didn't know you could get stuff a lot cheaper (usually) online.
Over the years though I did get quite a few bargins, mainly PC stuff, I don't recall getting or even seeing any good console bargins.
For me, it will be a bigger loss for Game Station to disappear than Game.
I played the hell out of those games and that one sales assistant is basically the reason I got into the point-and-click genre.
But with the ubiquity of the internet, I don't really think experiences like that are possible anymore...
Read through that link, and one persons post perked some interest:
Curious as to whether this person it correct? Or are laws like they outlined 'discarded' during the period on administration? I'll talk to a mate later and see what she thinks, although her specialty is family law.. so I'm not hoping for much :P
Asda and tesco are main reasons game has gone under under cutting most of the major releases with loss leaders in there stores, doing what game did to electronic boutique back in the day. Do I care not really bring on the sales is all I can say, 6000 people still rather small compared to wollys yes I feel sorry for em as they are mostly students who work there
Pc gaming in game died 10 years ago been that long since they had a major selection
Game has too many stores in a too small an area
Between Durham Sunderland Newcastle metrocentre
There's 8 gamestores and 4 game stations
Within 10 mile
Sorry - I was thinking about the 6000 staff about to lose their jobs - many of which may end up on benefits.
As the UK borrows ever greater amounts of money, much more than it earns, then we are on a downward spiral.
How many of that 6000, I wonder, used to buy products/services that you earn an income from - and won't any longer? Losses like this do have knock on effects - I guess we can bury our collective heads in the sand and continue buying cheap crap from the Pacific Rim countries - but there will become a time when we have to ask what are we going to buy when we don't have any earnings? We can't all be in the public sector without borrowing even more money because of ever dwindling private sector tax receipts.
It's the knock-on effects that we need to look out for - that's anything but short sighted.
It's called bankruptcy. ;)
Those 6000 will be on benefits, and have their rent paid also some claiming child benefit....and where do benefits come from YOUR TAXES.
Everyone shops online now it's easier and more convenient, you can shop for a bargain 24hr with a cup of coffee sat in a chair.
Thought as much, wasn't 100% sure though.
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I don't feel sympathy however, for a company that refused to change. I've not purchased a game from either of the store brands for over 5years as I can find it cheaper online. The pre-owned prices were terrible for both buying and selling (I use ebay and amazon to sell/buy pre-owned games) and PC section was totally neglected.
The company itself deserve what it gets, it's just a shame that their refusal to evolve as a company will kill off so many jobs.
Probably still cheaper than shopping in their stores :P
As far as the 6k people potentially being on benefits, although they will get those from taxes they will be spending 99% of that money on items, which will still be taxed one way or another. Also this is exactly what happened when i was at Original Shoe Company (which went into administration due to JJB), most of the people working there already had jobs before the place went. The people i felt sorry for were the shop managers as quite a few of them didn't have degrees (not necesarily a bad thing) but only had experience of a shop manager, and not much else.
I'm currently looking for a job as well, and there are plenty out there, you just might have to adapt, and potentially change career direction.
I'm happy to support a business which adapts and trades responsibly and also respects its customers and stays informed.
But let's face it, GAME feels more like a newsagent which sells a few budget games in the back.
hell even pc world has more going for it than game did in the last 10 year's.
I'm certainly not going to stump up high prices coupled with a complete disregard for my platform.
Like I said sad for the staff and I understand the implications of high taxes, I am a 50% tax payer and according to a press release recently 1% of the uks tax payers foot 28% of the bill.
But I hope this paves the way for a real game company to come in now, so let's keep positive.
The group has potential investors let's hope some of them know what they are doing and turn the group around.
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Unless anyone being made redundant by game has a side in arranging containerised goods to the far east, I doubt my business will be affected.
Further to this, its only 2500 or so staff being made redundant. Meaning they have a package to tide them over until they get a better job. Not to mention that the DWP lavishes ridiculous amounts of help onto large scale redundancies like this, and that the main group out on their bums is in the 18-24 year old group, they have a very good chance of getting a better job out of this than they had in the first place.
And in reference to the short sightedness, I was using it in relation to why anyone should support a company that contributes very little to either its own workforce, or to society as a whole. This is the company that monopolised the high st games market and muscled out every bit of competition, then went crying to everyone who would listen when supermarkets and online kicked their butts rather than came back and refreshed their outdated business practices.
1 & 4, Gift cards and pre-order deposits are essentially the same thing - An unsecured, no interest loan to the company with a view that goods can be acquired at a later date. As the company is now in administration these loans (debts to the customer) are the same as any other debt - In other words get in line with the rest of the unsecured creditors. .....and your at the back of the queue.
Also with reward cards and gift cards it can be considered that they amount to credit and as a company in administration Game will not be allowed to have credit dealings.
2, You still have your statutory rights with the manufacturer. Best of luck with that one.
It stinks but thats the way it goes.
A partial list of the stores to close is here.
http://gamerspy.co.uk/game-and-gamestation-list-of-confirmed-closed-stores
No doubt the full list tomorrow before the rent falls due.
+rep
Thanks for the answers :)
There are [were] *3* GAME stores [+1 gamesation, which has also closed], 2 of which have closed.
Not sad to see them go from the point of view of their 'pre-owned' con. Not happy to settle with the fact they were paying less for the game than they would wholesale, they then went to sell them on at an inflated price, which together with the 'online pass' cost you more than the new game to start with. For this they deserved their fate. They got so greedy and fat that they then were not agile enough move when they eventually saw that people were buying elsewhere. Complacency was their biggest downfall.
It was going to happen sooner or later anyway as very shortly there will be no 'media' associated with games and therefore nothing to sell.
In a competitive market their prices forced this upon them along with bad decisions. A shop specializing in the sale of video games is unlikely to survive when the supermarket 20 secs round the corner has better prices and choice.
Worst of it is, at least if it works there as it does here in the States, the execs will likely land nice jobs somewhere else. As if these weren't the idiots that drove the company into the ground headfirst. Meanwhile the grunts from the trenches end up on the dole because corporations can't pull their heads out of their asses and look past this quarter's results. (Corps are legally people, ergo they have asses, legally speaking.)
While correct if a company is still trading - if they go bust you have to get in line with the other creditors.
The biggest creditor gets 'first dibs' and usually very little is left. Certainly somebody owed some money for a game pre-order has no chance of seeing that again.
For those of you too young to know about such things google "shoe event horizon theory"
For those of you that know about such things don't say you didn't get warned, about 30 years ago.
Game have been there for every gaming need from buying a console like the xbox to the xbox 360 and even the playstation original right the way up to the PS3 and even the Playstation vita.
No matter what you play be it Xbox or Playstation Game have been there to cater for your every gaming need no matter how small like a scratched disc for a quid theyd fix it for you.
Game IS gaming no argument and none is needed ye sure they maybe a bit over priced but if you took back a game say Skyrim you got £22 for it if you took it back to Game thou if you took it to HMV youd only get £15 for it.
There is not a single company (now) that catered entierly to the needs of gamers and nothing else not even HMV do that as they also sell dvds and music equipment and in some places books and even have a coffee shop in them as well.
Like i said sure they may be over priced but you knew you were getting quality service from not only the company but also the employees. Iwent into Game and asked for advice on a new game to get for my Xbox and i got alot of help heck they even picked out a game for me and i love it it was rage then i went into HMV and noone in the game section could tell me a damn bit about anygame
I can hand on heart say I've never been into GAME to trade in an old completed game.
I'm a gamer and I play on PC, I own in the region of 700 games 500 of which are on STEAM, that's not including my console games. You also forgot to mention STEAM in your rant. GAME barely sell any of my pc games, or hardware or accessories. In fact STEAM is a company which caters more to my gaming needs. Not to mention that STEAM was generally 15% cheaper on most new releases and old games were anywhere from 20-80% cheaper depending on the offer. Pretty sure I never walked into GAME and saw all square-enix games up to date for £50.
Maybe the employees were in touch with the gaming community but the company certainly wasn't.
So please explain to me again how GAME were catering to my needs?
I don't know if you're a disgruntled employee or just a troll. If you are a former employee of GAME, then I'm sorry you lost your job, but blame the company not the customers. If you're a troll then peace out.
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I have never traded a game or bought a second hand one from Game. That is what eBay is for! Why would I want to add a middle man and pay the extra they add?
Also have you never heard of Amazon and it's product reviews?
+1 for Amazon, I probabl spend more money there than I do on steam (Steam is actually pretty expensive unless you get the deals).