Stricken video game retailer closes 227 stores

Game still trading
Game still trading
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GAME has closed 227 stores across the UK and Ireland – but the Bury St Edmunds store continues to trade.

The video game retailer announced it was entering administration last Monday and immediately closed 227 stores, making 2,104 employees redundant.

The company employs 385 people at its head office in Basingstoke and 5,136 in stores across the UK and Ireland.

In a press release, Game said: “This decision is taken after careful consideration and ceaseless interrogation of every possible alternative.”

It went on to thank its colleagues around the world for their exemplary dedication, passion and professionalism.

PwC LLP was appointed as the group’s administrators.

Mike Jervis, joint administrator and partner at PwC, said: “The group has faced serious cash flow 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.”

The Bury St Edmunds store has continued to trade despite the closure of 227 stores including two in Norwich and one in Milton Keynes.

A spokesperson for the company said: “It’s very much business as usual at remaining stores.”

Game has said that it is involved in ongoing discussions with a number of parties interested in buying the whole or part of the business.

Reports of Game’s financial difficulties were sparked several weeks ago after it failed to reach an agreement with lenders and suppliers to stock the latest releases.

The group suspended the trading of its shares on March 21.