Game Group to close 277 stores and put up for sale

Game Group to close 277 stores and put up for sale
Game Group to close 277 stores and put up for sale

Game Group, the high street retailer behind Game and Gamestation brands, is to close almost half of its stores and make 2,104 employees redundant, following months of sluggish sales and rising tensions with suppliers.

PricewaterhouseCoopers (PwC), acting as administrator, has today announced it will be necessary to close 277 out of 610 stores across the UK and Ireland.

The remaining 333 stores employing 2,814 people will stay open as normal while a buyer is sought.

Appointed to handle Game Group this morning (26 March), PwC is already understood to be in discussions with a number of parties about the sale of part of the business, with public-owned bank RBS believed to be among the interested parties.

Mike Jervis, joint administrator and partner at PwC, 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 retailer has struggled to modernise its business in the face of increasing competition from internet retailers such as Amazon. The retailer has very publicly fallen out with suppliers at the start of the year after being unable to honour deals. One such mixup meant stores were unable to stock game Mass Effect 3, one of the year’s most anticipated releases.

News of the store closures will also be a blow to the British gaming industry because the group is the only large standalone gaming retailer left on the high street.

Game started life as Rhino Group in 1991 after being founded by Bev Ripley and Terry Norris before being acquired by rival retailer Electronics Boutique in 1995.

Electronics Boutique later acquired a chain of retail outlets known as Game in 1999 to acquire the Game name, which it rebranded to in 2002. The retailer went on to buy the specialist video game chain Gamestation in May 2007.

The group’s head office is based in Basingstoke with operations in the UK and Ireland, Spain, Portugal, France, Czech Republic and Australia.

Follow Matthew Chapman at @mattchapmanUK


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers