March 29th, 2012

GAME could be out of Administration Tomorrow

A new rumour has appeared in the GAME administration saga that suggests tomorrow, 30th March, could see the troubled retailer exit administration thanks to a buyout from a collective of banks led by Royal Bank of Scotland.

While several other companies were in the running for the purchase – of at least part – of the long standing video game seller, RBS has emerged in recent days as being in pole position. Walmart and Hilco have remained quiet since early rumours of their involvement surfaced, while OpCapita’s offer was supposedly turned down. GameStop on the other hand made it seem quite clear it wouldn’t be striking a deal, since it was claimed its main focus in the UK was digital – suggesting a focus on the Impulse digital download platform.

However, even if RBS does swoop in and save GAME, it has been irreperably changed by the administration and recent financial issues. Nearly half of the UK based stores have closed, with a total of 277 being shut down. In Ireland, all but three shut up shop, with some employees staging a sit-in in protest of the only one week notice they received about the closures.

As MCVUK points out, an exit from administration should please the remaining several thousand staff – even if there is no hope for those that have been let go throughout this brief saga. It will also be interesting to see what changes will be made to the business beyond a downsizing to help it stay profitable from now on.

One thing that should be mentioned though, the hundreds of news stories that have been written about the business is the most publicity it has received in years. Maybe that will help.

Industry