Last week, they took the first steps towards administration by filing a Notice of Intention to Appoint an Administrator. Failing any last minute rescue deals, it looks like this week might see that administration finally come into action. That would mean a true fire sale of assets that some are claiming will be as bad as Woolworths collapse a couple of years ago. During that sale, I saw downbeat Woolworths staff actually selling their shelves to customers.
It seems like Game Group PLC (which also includes Gamestation, remember) has failed to put together a pre-pack deal that appeals sufficiently to a buyer that the business could be bought out as it stands for a reasonable return.
Swirling rumours of a swoop from GameStop seem like smoke in the wind too, there’s been no firm word of that company doing anything more than standing on the sidelines watching with interest, although they’re a logical choice if we want to pin our hopes on a rescuer.
So what does that mean? Well, it means that the business as it stands isn’t an attractive prospect for the buyers that were showing an interest. If talks have collapsed, those buyers are now likely to wait and see what the administration period resolves and may make offers to buy any assets of the business which they think are likely to be useful. Someone may wait a few weeks for all the worthless copies of FIFA 08 to be sold off at 5p a disc and then make an offer for key stores or logistical networks.
Above all, it means a longer period of uncertainty for the company and its thousands of employees.
Surely that’s the most heartbreaking element of this whole sorry story: the effect it will have on the lives of thousands of employees who depend on Game Group for their wages. As an outsider looking in, I can’t help but feel that the business hasn’t lived up to its potential over the past few years. Hindsight is a wonderful thing, of course, but Game Group’s failure to meet the rising digital sales market adequately and their inability to effectively offer an alternative to online retailers and their tax-haven discounts have been crippling. But those things are certainly not the fault of the regular Game or Gamestation employee.
So today, as we all sit waiting to hear the continuing story of Game Group’s financial insecurity unfold, we’re sparing a thought for those normal staff members who have carried on turning up for work, serving the gaming community and doing their best for the company and for themselves in what must be a truly dispiriting time. Best of luck to all involved.
main page photo credit: Johnny Green/PA Wire
MegaBonez
Though I have the greatest sympathy for the company and it’s employees, I hardly ever shop at GAME, I always find cheaper alternatives (apart from their great console deals, I got both my PS3’s there) so this isn’t really a blow for me. I do hope that some miracle can save them though, a lot of people have a lot to lose here. Fingers crossed for GAME and Gamestation!
GhostViper
That’s to bad. Hope the staff manages to get new jobs.
Weirdly, in Norway (and probably rest of Scandinavia) Game is still going strong.
Forrest_01
Not for long it would seem.
tactical20
Sorry if this sounds harsh, but working for Game is hardly a specialised skill. Store managers and staff can just get jobs at pretty much any other retail shop, which shouldn’t be hard with some experience.
colossalblue
2.67 million people are unemployed in the UK, it’s certainly not so simple as “just get jobs at pretty much any other retail shop”
yogdog
I can vouch for that. There’s absolutely NOTHING in the area atm, so I just do voluntary work just so I actually feel useful. Bit annoying as I’m constantly low on cash.
tactical20
My point is that retail is a huge sector, so finding a job will be much easier than if you were trained in a specialist skill. There are a lot more jobs for sales assistants than flux cored arc welders.
Forrest_01
Not really, as on one hand you might have a job for a flux cored arc welder with just a couple of applicants as they are trained for that position.
On the other hand you have 20 retail jobs & 1,000 applicants making your chances of actually getting a job significantly smaller.
Dazbobaby
@colossalblue
2.67 million on job seekers allowance.
With job centers pushing people hard into back to work schemes and off JSA to make unemployment figures look better.
I know this for a fact, I’ve been out of work for 3 years and have experienced the pressure from the Job center.
My thoughts are that unemployment figures are around 4million+
tonycawley
That’s a comment that really hasn’t been thought out very well at all tactical. I teach 16-19 year olds, all intelligent, can’t get a job for the life of them, right in the heart of the Olympic Village. Westfield Stratford, a massive shopping centre isn’t even employing anyone, their jobs went immediately.
Mickey2010
@Dazobaby
i have to agree i been out of work nearly year now it’s getting harder and harder to get a job and the Job Centre’s are pushing people to do work placements (36hours a week) and get a measly £15.00 a week extra to top it off i have done 2 pacements BnM and Sports World and none of them have led to permenant jobs because as the manager of Sports World said to me it’s alot cheaper to use people recommened to us by the Job Centre
Dazbobaby
My local tried to force me into a 36 week return to work programme after a 2 week course. The 2 week course was joke from the word go, over subscribed by 12, ( a maximum of 8 is the norm), faulty PC’s and useless tutors.
But luckily my uncle is mentally handicapped so I applied to be his carer. Now I no longer have to actively seek work.
Before anyone jumps in and accuses me of being a benefit scrounger I’ll tell you this, I used to be a Class 1 HGV driver and brought home £700 per week, now I’m on £95 pw. Trust me, I’m still looking, but this way just relieves the pressure from the job center.
I also worked from the age of 16 to 38 without ever missing a beat. 22 years of gainful employment. Now I cant even get a job as a part time cleaner.
Dazbobaby
I feel for the staff because I know the difficulty in finding work these days.
cc_star
GAME’s bosses have mis-managed the company spectacularly, when they were swimming in money a couple of years ago at the height of the Wii & DS boom, they should have invested in the next big thing & cornered a slice of the emerging digital market, rather than be almost cut out of it altogether, they should have modernised their stores & sales model, instead they’re having to do that with no money, which is obviously impossible.
It’s hard to imagine what a spectacular fail it has been at boardroom level.
Sad thing is that all those responsible will walk in to similar positions at other companies, whereas many of the people lower down the chain will probably be joining the dole queue
tactical20
I live in Kent and there are tons of retail jobs on jobsinkent.com
Redundancy is just a part of working these days. You need to be pro-active and always on the look out for something better. If I was working at Game, I’d have been applying for other jobs a long time ago.
giantwoman
What a self-centred view you seem to have on this. Just because there are job on one website in one county doesn’t mean that the GAME employees in that area will be able to get them. I can assure you that working in GAME doesn’t instantly give you access to every retail outlet that is employing. Transferable skills are one thing, product knowledge is wholly different.
I certainly think that saying “redendancy is just a part of working these days” is an awful thing to suggest, and if you are constantly on the look out for another job then I pity your current employer.
Forrest_01
If you were savvy enough to keep an eye on the news on it, yeah, you could potentially plan ahead, but it wouldn’t make the job search any easier or any more welcomed.
I am pretty sure that the management of Game have told the staff pretty much jack sh*t, so if they hadn’t heard the news for themselves, some might only be finding out today.
manky_
There’s 49 retail/wholesale jobs. And how many other folk will be going for them, without Game staff being added to the list
cc_star
Then the next week there’s another 20 jobs next week & then another 20 jobs, sure there’s plenty of people going for them, but (in general) the people who get them will be the people who try the hardest to get them.
tactical20
I apologise. Losing your job is obviously shit. I’ve been made redundant twice on the last 3 years.
I guess I just found the whole ‘our thoughts are with you’ title a bit dramatic and it made me extra cynical.
Dazbobaby
On the day of the Vita launch and several days after, I went into all my local video game stores to check their sales figures.
Supermarkets = Nil Points, not one sale across 4 supermarkets, and that includes Asda who are the cheapest bricks and mortar retailer.
Game and GameStation = 35 sales between them.
Even though Game Group were the most expensive people still wanted to chat to knowledgable staff.
THAT HAS TO COUNT FOR SOMETHING!
I’m not shouting, just emphasising.
bigkingy
I found it funny he said “luckily my uncle is mentally handicapped”
Dazbobaby
good point, engage brain in future.
Burgess_101
Was always going to happen. Cant say I have ever enjoyed setting foot in any GAME at all. Gamestation wasn’t too bad though. Well looking to the future hopefully the high street can hit back and give me a reason to want to have that 20 minute drive down to my nearest shopping centre. Though I would say if you were having to rely on the staff of the shops then your shopping wrong. Its not too hard to ask whoever your buying for what do they want for such and such. Im glad my family are like that. I wont miss them at all CeX is the only one I would miss. I have had some great times in the Harrow CeX probably the place that got me really interested in games.
The Lone Steven
I hope this will serve as a lesson to any other remaining gaming specialists left in the UK as this is what happens when you dedicate 75%-90% of shelf space to preowned.
I hope those who have lost their jobs will be able to get employed soon. :)
class47
I’m so sorry to hear about terrible times at game and gamestation, i always found the staff at all the stores so helpful, they went out of their way and nothing was too much trouble