Game Group enters administration, shops and jobs at risk

Struggling retailer Game has officially entered administration, after Britain's biggest video game seller was unable to find a buyer. It will result in the closure of stores around the UK, and thousands of jobs are now at risk.
Game Group, which covers both Game and Gamestation, was facing a £21 million rent payment, was struggling with £180 million in debts to creditors, suppliers and banks, and had incurred some £18 million in losses in last year of trading.
Earlier this year, suppliers like Microsoft, Nintendo, Electronic Arts and Capcom refused to do business with the retailer. As a result, high-profile releases like Mass Effect 3 and Street Fighter X Tekken were not sold in stores or online.
On 21 March, Game put out a press release which said, "The board now considers itself to be unable to assess the business's financial position, and is of the opinion that there is no equity value left in the group." It then suspended from trading by asking to drop out of the Main Market of London Stock Exchange.
Despite an offer from private investment firm OpCapita, on 26 March Game said "the board of Game has completed its discussions with lenders and third parties without resolution, and has therefore today appointed PWC LLP to act as administrators for the group.
"This decision is taken after careful consideration and ceaseless interrogation of every possible alternative."
While in administration, Game will be protected from its creditors while a restructuring plan is organised, but strict cuts will be made to the business. Ian Shepherd, the CEO of Game, has already resigned from his role, and said that store closures and job losses will be announced shortly.
There are currently 609 stores throughout the UK and Ireland, with 385 employees in the group's head office in Basingstoke, and 5,136 store employees across Britain. Overseas, there are 5,000 staff members in 670 stores.
Mike Jervis, joint administrator and partner at PwC said in a statement to MCV, "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."
Game has faced pressure from online retailers like Play.com and Amazon, and digital distribution through services like Xbox Live, Steam and Origin.

Thank You : Source : wired.co.uk