In an email to staff on Friday (picked up by MCV), GAME boss Ian Shepherd has tried to play down the fact that little information has made its way down from up high to those hard workers on the ground.
After highlighting staff determination and passion, he addresses the media coverage – presumably referring to the likes of MCV, where many GAME employees have been getting all their information about the company.
“That bothers me a lot,” says the refreshingly honest email, “because it is really important to me to be as open and straight with all of you as I possibly can be.”
“The reality, I’m afraid, is that a lot of what you read online is speculation about things that might happen, rather than facts about what actually is happening. Some of it ends up being right, a lot doesn’t, but I can completely understand why it feels like you are reading more online than you are hearing from us.”
He then highlights the facts. “We’ve filed a notice of intention to appoint an administrator, which gives us the ability to trade with some protection from our creditors.”
“That’s not the same as saying we’ve already gone into administration,” he then says before having a bit of a dig at those of us reporting on all this: “despite that being what a lot of online sites are saying – they don’t fully understand the process they are writing about.”
He then says that an administration will be appointed if there’s no buyer, but that such a process will attempt to sell the business as a ‘going concern’ rather than close it down.
“We’ve made arrangements to ensure everyone is paid for the work they’ve done this month,” he says. “Everything else you read online is simply speculation. It’s painful to read so much coverage and feel so powerless about it, but I’m afraid it goes with the territory of being in this awful situation.”
Our thoughts, as we said this morning, are with GAME’s staff.
Update: we’ve just heard Shepherd has stepped down, with stores to close. More soon.
cc_star
Into administration… lose all your debts which means other companies won’t be paid the many millions they’re owed which could put jobs in danger there. All through chronic mis-management at director level.
Debt free, or at least with vastly reduced debts a company which turns-over more than a billion pounds/yr will be of great interest to potential buyers.
Meanwhile independents or other companies in general, struggle to get by paying what they owe, whereas administration enable a company to get away with it (should they bought out of administration)…. I hate administration & anyone who takes a company into it should never hold an executive position at a company ever again.
jikomanzoku
Wholeheartedly agree, administration seems akin to legalised robbery to me. The bar to executive status is a very good idea indeed and though not relevant with GAME, would also help to prevent people repeatedly abusing the system by setting up similar companies over and over and folding them a la couchworld, world of couches, planet couch style things.
mrfodder
Administration is generally a case of the creditors trying to get back as much as possible. A company is usually worth more as an operation than as the sum of its parts. Owners of a company in administration get nothing.
cc_star
It is legalised robbery
Imagine a football club buying up all the players they can regardless of cost & paying those player extortionate amounts, multiply that over many, many years of living beyond your means & then when it all comes crashing down around you, simply wipe off the overwhelming amount of debt… still have the benefit of your overspending, but you’re then on a level playing field with people who have behaved financially responsibly all along, but you have all the benefit of your recklessness.
Same goes for the banks, or any sector or situation really.
Mis-management is frequently rewarded.
mrfodder
The football club might survive, but the not with the same owners. The creditors, who have a responsibility to themselves not to loan money to reckless people, get more money than they would have if it was all shutdown. If the creditors though they would get more of their money by closing up shop they would.
Roynaldo
I hope the staff in more fortunate areas of the country are actively seeking other employment. I know I wouldnt be sitting around waiting for the hammer to fall.
Forrest_01
Sounds like a good way to cover up why they haven’t told anyone anything about the future of the company. Because obviously no-one but them would have any idea about what might happen to their company. :/
Forrest_01
Oh & shame on TSA for reporting news you apparently have no idea about!! :S
heedbaw
lol, indeed. The proles could never understand the intricacies of running a business. Just tell them they’ll get their peanuts, that’ll shut them up.
heedbaw
If that’s the first time staff have been told anything then I wouldn’t say that he has been ‘open and straight’. They would already be fully informed of what is happening and would know that the rumors and speculation are exactly that.