GAME goes into administration
|NEWS - VIDEOGAME NEWS|
Things go from bad to worse at the GAME group...
Unlike the recent Rangers footballing debacle, the sad demise of GAME has been well publicised.On 16th March, Shadowlocked new-comer Michael Glavin expressed concern at the recent failings of the chain, highlighting an all-time low stock price and an end of publisher support as a sign of things to come. Just 10 days later and it would seem Michael, along with a substantial proportion of videogame analysts, called this one just right...
In a sad email, Ian Shephard - the now former CEO of GAME - acknowledged that the group had been unable to attract a buyer or prolonged equity investment and as a result had entered administration:
"I've said a number of times that the administrator, once appointed, takes charge of the business...having two people try to do that is both confusing and a waste of money. With that in mind, I've agreed with Mike that I will step down as CEO and the business immediately – this is my final email to you all."
In a grim warning to fellow retailers, Mr. Shephard expressed deep sadness towards GAME's situation, with a raw emotive state present throughout the email:
"As no deal has arose, I have signed the necessary paperwork this morning to allow the appointment of administrators. The process has been finalised, and so Mike Jarvis from PwC takes charge immediately.He will have a lot to do very quickly.
Let's be clear, he will certainly make big changes, both to the store estate and in the office, but will be doing so with a view to creating a trading business that he can attract a buyer for "
And yet, despite his obvious upset, Mr. Shephard remained optimistic towards both the industry and the business as a whole. In an empowering sign off, he stated that "...it would be a difficult week for everyone" but, like every cloud, the business would find its silver lining:
"As I've said before, the business is worth more trading than not. Mike will do his job but, for now, the best thing you [shareholders, workers, consumers] can do is to continue as normal, helping to create the most positive outcome you can."
At present, the future of the chain appears uncertain. Whilst rumours arose of potential buy-outs - inclusive of Comet owner Optcapital and US retailer Gamestop - a fixed deal has yet to be agreed. With the company now in administration, one would assume that substantial losses - both asset and workforce related - are around the corner, as PwC try to prevent a final decline into receivership.
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