GAME Administration Day One: 277 Stores Shut, Over 2000 Staff Redundancies
Written Monday, March 26, 2012 By Lee BradleyView author's profile
The dust has settled on GAME’s first day in administration and already 277 stores have been shut, with plans to make 2104 staff redundant.
This morning, GAME Group ran 609 stores across the UK and Ireland, employing 5136 staff. Now just 333 stores remain open, with 2814 staff.
It could get worse, too. While the administrators, PwC have indicated that the remaining stores are to trade as normal, there’s still no guarantee that they will find a buyer. Even if they do, investors are unlikely to keep the retailer in its current form. That could mean more job loses.
"PwC can confirm that the joint administrators are liaising with a number of parties who have expressed an interest in purchasing part or all of the business and assets of the group," said a statement issued today.
"However, having reviewed the on-going operational requirements of the business and with the continued difficulties on the high street, unfortunately it has been necessary to close 277 stores throughout the UK and Ireland as of today.
"The administrators are working closely with employees affected by this decision to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments.”
Joint administrator and PwC partner Mike Jervis said: "Our priority is to continue trading the business as normal while we continue to pursue a sale. The recent job losses are regrettable but will place the company in a stronger position while we explore opportunities to conclude a sale.
“My team and I will be doing all we can to help the affected employees at this difficult time."