GAME Gets Delisted, Enters Administration

GAME Gets Delisted, Enters Administration

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News on GAME's future came earlier than expected, and sadly, things aren't looking good.

Much like an asteroid tumbling through our galaxy on a collision course with Earth, we all knew this day way coming. Sure, we assembled the crack team of astronaut commandos and tried to nuke the space boulder in twain before it flattened us, but sometimes, when nothing seems to work, its time to just clench our teeth and prepare for the inevitable. Such is the case with GAME, the UK retailer with a recent history of pain that, at this point, doesn't bear extensive recapping. Suffice to say, the heavily predicted doomsday has come, and the company has gone into administration.

As you can probably imagine, GAME's board has likely been in session around the clock, as it was revealed earlier this week that a Monday shutdown was eminent if an acquisition deal wasn't brokered. Though the company had initially clung to hope of that possibility, as of this morning, its board has announced that it sees "no equity value left in the Group," and as such, has requested that it be delisted from the London Stock Exchange, effective immediately.

Later, the board followed the announcement of its delisting with decision to enter voluntary administration. For those of you unfamiliar with the term, though not a perfect comparison, think of it as the British version of American bankruptcy.

"Further to this morning's announcement of the suspension of trading in shares of GAME Group plc," an official statement reads, "the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business.

"The board has therefore today filed a notice of intention to appoint an administrator.

"In the short term the Board's intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium."

The good news is, if there is good news, that according to the potential scenarios outlined by GAME prior to these events, a voluntary state of administration would include a plan to only close 1,000 of its stores while 300 would be rebranded and reformed as a "new company, funded by current bank lenders." It may not be much, but could at least save a substantial number of workers from losing their jobs.

Source: MCV

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That is one determined asteroid Kayatta

Mike Kayatta:
As you can probably imagine, GAME's board has likely been in session around the clock, as it was revealed earlier this week that a Monday shutdown was eminent if an acquisition deal wasn't brokered. Though the company had initially clung to hope of that possibility, as of this morning, its board has announced that it sees "no equity value left in the Group,"

Fixed that for them.

The good news is, if there is good news, that according to the potential scenarios outlined by GAME prior to these events, a voluntary state of administration would include a plan to only close 1,000 of its stores while 300 would be rebranded and reformed as a "new company, funded by current bank lenders." It may not be much, but could at least save a substantial number of workers from losing their jobs.

If it's still being run by the same people, those jobs won't last long. Personally I'd rather be unemployed.

Does this mean anything to GAME stores other than in the UK? I remember reading an article that said the international stores were more responsible for failing than those "closer to home".

And this whole time they are still taking pre-orders for stuff they know they won't be selling.

Just as a point of clarification, while I'm unsure how bankruptcy works in the US, going into administration is seperate. Going into adminstration means you appoint someone (normally an accounting firm) to run the business instead of the board in an attempt to keep it afloat as long as possible and if they can't, to pay off as many creditors as possible. At this point the company still has some level of liquidity as well as their assests. Bankruptcy means they're out of money completely.

OT: This really depresses me. Partly because I've been shopping at the same Game store for decades and partly because it says a lot about the games industry (Publishers and/or consumers) that a dedicated hobby store is unable to stay open. As true as it may be, people will leap on this as a sign of Gaming is dying and without a dedicated store pushing the more populist areas, I wouldn't be surprised if Gaming because much more of a niche hobby come the next console generation.

Saw this on BBC Breakfast this morning. You could say it brightened my day more than the bright sunny day could have done.

Antitonic:
Does this mean anything to GAME stores other than in the UK? I remember reading an article that said the international stores were more responsible for failing than those "closer to home".

Id assume this means non-UK stores are shutting up too.

Though that said, i wonder what kind of exectutive manages to remain indecisive about closing only a few hundred stores that were dragging down profits so hard that it was endangering the company as a whole.

Plinglebob:
I wouldn't be surprised if Gaming because much more of a niche hobby come the next console generation.

Given all of the CoD kiddies that are swarming through our multiplayer games filling them with barrages of swearing, racism and insults, i wouldnt consider it such a terrible thing.

Dam this means I now have to shop at Granger games.

Anyone else noticed that the prices of alot of their pre-owned stuff got jacked up again on the website today?

Goodnight, sweet prince, and may angry people on the internet who don't have as many fond childhood memories of you sing thee to your sleep.

At least it'll continue in some manner, but for how long, I ain't sure. Maybe the reboot'll be a genuine new start, or maybe we'll just see this sad story play out with a painful epilogue.

We all saw this coming. Sad that so many people are losing their jobs, but what their buisiness practices, that deserved it to be honest. So...

So big sale!?! I've wanted a PS3 for a while!

OT: It's sad to see the day come, but we knew it would happen, and also, I have nowhere to go for work experience.

R.I.P

As bad as many feel they were, I cannot understand all the, "Herp derp they deserved it" attitude. No one at all who works for GAME deserves to lose this jobs, and what could be pretty instantly that next week they'll be in the job centre applying for some dole.

I think it's sad for the UK High Street, the workers and everyone who relied on GAME who cannot do on-line purchases. But alas, it was coming, and I don't think any other entertainment stores are going to be safe (HMV - they've already been bailed out, and their pricing system is beyond weird, they won't last IMO.)

Plinglebob:

OT: This really depresses me. Partly because I've been shopping at the same Game store for decades and partly because it says a lot about the games industry (Publishers and/or consumers) that a dedicated hobby store is unable to stay open. As true as it may be, people will leap on this as a sign of Gaming is dying and without a dedicated store pushing the more populist areas, I wouldn't be surprised if Gaming because much more of a niche hobby come the next console generation.

Yeah, a store who literally craps on his PC gaming customers, on the industry by forcing higher prices in DD on them and still bullying customers into buying used and then going bacrupt because they tried to create a monopoly.

The state of GAME shows one thing: They weren't able to go with the time. In the UK people seem to discover that about everything is cheaper than GAME. I won't shed a tear towards those retailer chains. What have they done for me as a customer? Lets see:

Higher prices on Steam for purchases outside of sales (They and other retailers refuse to stock titles if you can get them cheaper in DD)
Little pieces of content seperated over all big retailers as "preorder bonus".
Games not releasing on Steam in certain areas (UK).

Only closing 1000 of your 1300 stores is good news? I guess it is for those that work in them 300 stores, although i bet there will be some firing and restructuring in those 300. After all they still want to keep the best staff from the other 1000?

Never liked Game.

Well I know where to visit first thing in the morning tomorrow.

It still isn't over.

Whilst being removed from LSE is pretty ominous, the talks with OpCapita still haven't ceased - remember they purchased Comet under similar circumstance not too long ago.

That being said, I'm glad I made my money over their misfortune last week, and doubly glad I didn't keep my funds in past daily trading. I wouldn't be amused now if I was one of many leaving funds tied at market close 20 March.

To those hoping for a "clearance sale", don't hold your breath; new titles will be shipped back to publishers for refund and used titles remaining will be sold to pay creditors. I would however recommend spending any accumulated gift vouchers etc, if the company does make it through and change hands it is under no obligation to honour "fake currency" when it respawns.

Scarim Coral:
Well I know where to visit first thing in the morning tomorrow.

wouldn't bother, was in my local store not half an hour ago, nothing, pre owns back to normal price, no new games to speak of, and staff that look like their about to burst into tears.

Sorry lads, I'll be sorry to see you go!

:/

i've been trying to come up with and arcade joke centering around bumming change to continue :/ its not coming together, but it'd fit XD

Yes, Game is going under. We don't need 5 articles a day to exemplify this.

DVS BSTrD:
That is one determined asteroid Kayatta

Mike Kayatta:
As you can probably imagine, GAME's board has likely been in session around the clock, as it was revealed earlier this week that a Monday shutdown was eminent if an acquisition deal wasn't brokered. Though the company had initially clung to hope of that possibility, as of this morning, its board has announced that it sees "no equity value left in the Group,"

Fixed that for them.

The good news is, if there is good news, that according to the potential scenarios outlined by GAME prior to these events, a voluntary state of administration would include a plan to only close 1,000 of its stores while 300 would be rebranded and reformed as a "new company, funded by current bank lenders." It may not be much, but could at least save a substantial number of workers from losing their jobs.

If it's still being run by the same people, those jobs won't last long. Personally I'd rather be unemployed.

Do you have much experience with unemployment?

Vault Citizen:

DVS BSTrD:
That is one determined asteroid Kayatta

Mike Kayatta:
As you can probably imagine, GAME's board has likely been in session around the clock, as it was revealed earlier this week that a Monday shutdown was eminent if an acquisition deal wasn't brokered. Though the company had initially clung to hope of that possibility, as of this morning, its board has announced that it sees "no equity value left in the Group,"

Fixed that for them.

The good news is, if there is good news, that according to the potential scenarios outlined by GAME prior to these events, a voluntary state of administration would include a plan to only close 1,000 of its stores while 300 would be rebranded and reformed as a "new company, funded by current bank lenders." It may not be much, but could at least save a substantial number of workers from losing their jobs.

If it's still being run by the same people, those jobs won't last long. Personally I'd rather be unemployed.

Do you have much experience with unemployment?

I At least then I would have the chance of being hired by somebody who has a clue what they're doing.

DVS BSTrD:

Vault Citizen:

DVS BSTrD:
That is one determined asteroid Kayatta

Fixed that for them.
If it's still being run by the same people, those jobs won't last long. Personally I'd rather be unemployed.

Do you have much experience with unemployment?

I At least then I would have the chance of being hired by somebody who has a clue what they're doing.

Unless GAME has a very long notice requirement you could still search for a new job while working for GAME. That way you still have a job while you look and don't run the risk of a prolonged period of unemployment.

If Game actually did go for good, I'd miss them. Hopefully they can keep things going for a bit longer, maybe things could pick up again.

I was in one of the Game branches just a few days back and it did make for a bit of a sorry sight. It's not a good sign when they aren't even able to stock 360 controllers, let alone thr games. That, and the staff didn't exactly look at their happiest either.

Maybe I've just been lucky, but I've also had some good banter with the staff in the Game shops round where I live. Something that would likely be sorely missing if we had to switch to buying from a non-specialist shop.

FamoFunk:
As bad as many feel they were, I cannot understand all the, "Herp derp they deserved it" attitude. No one at all who works for GAME deserves to lose this jobs, and what could be pretty instantly that next week they'll be in the job centre applying for some dole.

I don't remember anyone saying that the underlings deserved to lose their jobs, just that their business practices were sometimes outrageous enough for people to not care about them as a company shutting down.

I have fond memories of saving up my pocket money for weeks then when I got enough then the exited trip to Game to get something for my master system. Then later on in my life the exited trips to buy the latest console on release like I did with the PS2, xbox and DS. Whilst I don't use them anymore under normal circumstances I'm sad to see them go, they're a little bit more of my childhood gone.

 

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