PWC ADMINISTRATORS have closed 227 Game group stores and made more than 2,000 redundancies following its collapse this week.
Mike Jervis and Stuart Maddison, partners at PwC, were appointed joint administrators of the UK and Ireland operations of Game Group, Game Stores, Gameplay (GB), Games (Stores), Game Station, Game (retail) and Gamestation on 26 March.
Game suspended trading on the London Stock Exchange earlier this month due to a lack of equity value in the business.
Although the joint administrators are trying to find a buyer they announced the store closures and 2,074 redundancies this week.
Jervis (pictured) 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.”
The group had a turnover of £1.6bn and operations in Spain, Portugal, France, Czech Republic, and Australia. In the UK Game had 609 stores and employed about 5,136 staff.
The remaining 333 stores, employing 2,844 staff, will stay open as normal while the administrators search for a purchaser.
Jervis said previously that the company had faced “serious cashflow and profit issues…ambitious international roll-out and fluctuating working capital requirements”.
“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,” he added.
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report
Mid-sized British firms are currently growing faster and generating more profit than their counterparts in Germany, France, Italy and Spain, despite uncertainty surrounding Brexit, says the report
UK private investor Endless LLP acquires the high street retailer, saving 840 jobs
Three new partners and seven business restructuring advisers have been appointed to the new Preston office
Political and economic uncertainty behind the fall in confidence