Game goes into administration

UK's biggest video game supplier appoints PwC as it hopes to be sold as a going concern

Struggling high street retailer Game has gone into administration despite a desperate fight to keep its head above water.

Last week the firm announced its intention to find an administrator after admitting it had failed to find a "solvent solution" to its financial woes, which included a fallout with suppliers.

The Group, which includes Game Stores Group Ltd, Gameplay Ltd, Game Ltd, Games Station Ltd, and Game (retail) Ltd, has appointed Mike Jervis and Stuart Maddison at PwC as joint administrators.

With a turnover of £1.625bn in the year to 31 January, the Group has operations in the UK and Ireland, Spain, Portugal, France, the Czech Republic and Australia. It currently has 609 stores across the UK and Ireland and employs just under 5,450 staff. Its head office is based in Basingstoke.

Jervis confirmed in a statement that the firm was hopeful of being sold as a going concern.

“The Group has faced serious cashflow and profit issues recently. It also has suffered from high fixed costs, an ambitious international rollout and fluctuating working capital requirements,” he said.

“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.”