Interest Game Group Goes into Administration
posted on 2012-03-26 10:17 EDT by Andrew Osmond
The videogame retailer Game Group, which owns the Game and Gamestation stores, has gone into administration, seeking buyers.
According to the Daily Telegraph newspaper, a consortium of banks, led by the Royal Bank of Scotland, is among the bidders for a "slimmed-down" Game Group. Rival bidders include America's Gamestop and the private equity firm OpCapita.
Game Group has 609 Game and Gamestation stores, employing around 5,100 people. According to the Telegraph, "The retailer had a £21m rent bill due on Sunday and faces a £12m wage bill this weekend, although PwC [PricewaterhouseCoopers] is expected to honour any wages owed." PricewaterhouseCoopers is now administrating Games's U.K. operations.
The Telegraph adds, "Game suffered a dismal Christmas and was later forced to ask suppliers for more generous trading terms. However, many stopped supplying it with new releases." Earlier this month, it was reported that Game and Gamestation would not be stocking either of the Capcom games Street Fighter X Tekken or Asura's Wrath. Electronic Arts and Nintendo have also withheld recent products from the retailer.
The Evening Standard newspaper adds that "the administration of Game... is the biggest for a listed retailer since Woolworths collapsed in November 2008."
Via MyM's twitter feed.