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Post by Steve Farrelly @ 10:18am 12/03/12 | 21 Comments
A report over at Yahoo.uk suggests that the troubled (in the UK) GAME retail business may finally be facing administration, causing some 10,000 people to potentially lose their jobs.

The site reports that GAME in the UK has put itself up for sale, and that quarterly rent on its 600 UK stores is due in a fortnight of writing, leaving them open to administration if no one sees potential in any kind of buy-out.
The retailer's trading difficulties deepened in recent weeks, despite it agreeing revised lending facilities with its banks last month.

But the loan was not enough to reassure suppliers, with Game reportedly losing the rights to sell keenly awaited fighting game Street Fighter X Tekken. Last month the retailer told gamers it would not be selling popular sci-fi game Mass Effect 3, supplied by Electronic Arts.
We've contacted local PR for GAME here in Australia to see if there's a knock-on effect expected, or any trouble at all locally, and will update this story when we get a response. In the meantime, we're hoping said 10,000 GAME employees aren't left out in the cold.



gameukgame ukfinancial trouble





Latest Comments
thermite
Posted 10:20am 12/3/12
Where is this Stake place the jobs are at?
step
Posted 10:36am 12/3/12
Did you say steak?!
Raven
Posted 11:01am 12/3/12
Just what the UK needs, another 10,000 people aged 18-30 unemployed :/

Also, that's a lot of rent that's not gonna get paid. It ain't just gonna be the gaming industry that gets hurt by this one.
HyperJ
Posted 01:04pm 12/3/12
Same as EB over here, way overpriced,not surprised
BassMan
Posted 01:39pm 12/3/12
...makes you wonder how long EB can hang around here in Aus. 1 ~ 2 more years? Surely they must see the writing on the wall?
Romper
Posted 02:21pm 12/3/12
Can you see EB making any changes to their current business model as a result of this news? I'm sure they're feeling the pinch.
Raven
Posted 03:08pm 12/3/12
Are EB still turning a healthy profit? If so, why would they react?
trog
Posted 04:17pm 12/3/12
10,000 people for 600 stores seems a little out of wack...? Although I guess I'm imagining them like a small EB with like 3-5 employees each. Are they massive stores with stacks of employees per store?
Khel
Posted 04:38pm 12/3/12
I guess it would include admin staff at head offices and warehouse staff as well, but 10,000 still sounds like a lot
Scooter
Posted 04:44pm 12/3/12
Admin, Warehouse, Head Office and an (uncircumsized) d*** load of Casual workers that only get <10 hours a week work anyway.
HyperJ
Posted 08:51pm 12/3/12
Bookstores, now game stores, there really isn't a business model left for bricks and mortar stores selling what is available electronically online, slowly its moving into more areas outside digital media too. I've bought the majority of my electronics and whitegoods online, and I notice more and ads for items such as shoes.
Whoop
Posted 08:57pm 12/3/12
world needs another war, the ones that don't die will all have jobs rebuilding the cities. Plenty of work for all.
Thermal Ions
Posted 09:01pm 12/3/12
A fortnight to have a sale in place isn't much considering that any purchaser is going to have to undertake due diligence. Although it's possible a conditional contract of sale may be enough for the landlords to delay taking action in order for a sale to be finalised.
Raven
Posted 09:13pm 12/3/12
16 staff per store doesn't sound unreasonable if you have a few casuals/part-time staff per store, and then add admin, marketing, warehouses etc.
kos
Posted 09:27pm 12/3/12
10,000 people for 600 stores seems a little out of wack...? Although I guess I'm imagining them like a small EB with like 3-5 employees each. Are they massive stores with stacks of employees per store?

They're similar in size to an EB, but the average GAME store I saw in the UK was probably about twice the size of the average EB I've seen in Australia and the US.
maRtz
Posted 04:48pm 13/3/12
paying rent for 600 shops?!?! jeebus! do they actually own anything?
skythra
Posted 05:11pm 13/3/12
10,000 people for 600 stores seems a little out of wack...? Although I guess I'm imagining them like a small EB with like 3-5 employees each. Are they massive stores with stacks of employees per store?

Well, if you think of most kids at highschool they can only do 1-3 casual shifts per week and the distribution chain which supports the companies which could be internal as well as managers at higher levels who do the advertising, and support for the chain would all be cut.

17 people per store isn't so much when you consider that.
Mordecai
Posted 06:20pm 13/3/12
paying rent for 600 shops?!?! jeebus! do they actually own anything?

Signage?

Probably rent that as well.
Trauma
Posted 02:34pm 22/3/12
IVY_MiKe
Posted 02:13am 23/3/12
10,000 is pretty conservative.

I used to work for EB and had (at a medium/small store) at minimum 5 staff, but at one time or another as many as 9 staff.
Some of the larger stores (Bondi in Sydney is fairly large) would easily have double-triple that, as well as two full sets of management staff (to allow for appropriate coverage of longer shifts).

This is all before you get a concept for the logistics and head office manning.

The PC market turned it's back on retail sales (and I fully count myself as a part in that) some time ago. With the next generation of consoles looking at 'direct download' type sales models, I think this will kill off all of the video game sales stores in Australia (if not globally).


I was walking around the only WOW Sight and Sound store in the ACT yesterday... and it's pretty depressing. But with Australia not really manufacturing any of these types of goods, and with our (sometimes bloated) consumer practices and staff entitlements, this seems to be more and more where we're headed.

(I'm all for 'buying Australian', but how is the local 'Market' supposed to function in these circumstances)
mental
Posted 08:13am 08/4/12
Commenting has been locked for this item.
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