Last week the government offered the video game industry a big tax break in the Budget, but it didn’t come soon enough for retailer Game.
Mike Jervis and Stuart Maddison of PwC were appointed joint administrators of the company after failing to reach a rescue deal or negotiate a “pre-pack” over the weekend.
The follows Game’s announcement on 21 March that it had filed a notice of intention to appoint an administrator and the suspension of trading in its shares on the London Stock Exchange.
It will now close nearly half the UK’s 609 stores today, leaving 2,104 people jobless in the biggest collapse since Woolworths four years ago.
The Basingstoke-based group will now focus its efforts on saving the remaining 333 UK stores for a possible deal over the coming weeks.
Mike Jervis, partner at PwC, said: “The group has faced serious cashflow and profit issues over the recent past. It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.
About Robert Lovell
Business and finance journalist