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Posted by drew10 on Mar 26, 2012
GAME Axe Stores and Jobs

GAME Axe Stores and Jobs

GAME Stores Group administrators, PricewaterhouseCoopers (PwC) have begun closing the firms stores and laying off staff. The Sun newspaper is reporting that 2100 jobs and 277 stores have already gone with more likely to follow.

Mike Jervis (spokesman for PwC) said that whilst the cuts were severe it was a necessary move to make the company viable as a business and that GAME had too many shops and needed far fewer. Jervis also confirmed that the suspension of GAME credits is only a temporary measure.  The administrators have also taken both Gamestation and GAMES websites off-line. It is unlikely that Gamestation will re-emerge. It is also debatable if will either.

These closures come as a backdrop across the country whilst PwC are “Still confident a buyer can be found for the group.” A full statement also read “The group has faced serious cashflow 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,” said Mike Jervis, joint administrator.

“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.”

We hope so also as this is going to cast a very large hole in the UK gaming retail business. How long the process of finding a buyer may take is anybodies guess as is whether there are any ongoing negotiations.

We can only wait and see.

Has your local GAME or Gamestation closed its doors today?

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