The news that we have all been expecting has finally been announced today. GAME stores has entered administration. The company announced late last week that they were filing for administration but were hopeful something could be salvaged. However that is sadly not the case.

There will most likely be some store closures in the near future and sadly thousands of people will lose their jobs. No numbers were announced, but the administrators are still hopeful that the business can still be salvaged and a buyer will be found.

This is a sad day in the gaming industry. The UK’s biggest video game retailer may now disappear form our high streets for good and most importantly thousands of people will lose their jobs. Playstationer.net would like to wish everyone involved the best of luck for the future and hopefully something can be sorted out soon.

Here is the administration statement in full:

“Mike Jervis and Stuart Maddison of PwC were appointed joint administrators of the UK and Ireland operations of The GAME Group plc, Game Stores Group Limited, Gameplay (GB) Limited, Game (Stores) Limited, Games Station Limited, Game (retail) Limited, Gamestation Limited (“the group”) on 26 March 2012. The appointment was made following the company’s announcements on 21 March that the listing of its securities on the Main Market of London Stock Exchange plc had been suspended from trading and a filing of a notice of intention to appoint an administrator had been made.

The group, with a turnover of £1,625m in the year to 31 January, is a multi-channel retailer of video games and video games hardware trading under the names of Game and Gamestation. The group’s head office is based in Basingstoke with operations in the UK and Ireland, Spain, Portugal, France, Czech Republic and Australia. There are currently 609 stores throughout the UK and Ireland. There are 385 employees based in the group’s head office in Basingstoke and 5,136 store employees across the UK and Ireland.

 Mike Jervis, joint administrator and 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.

“Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one, the UK. As a result we are hopeful that a going concern sale of the business is achievable.”

Source: MCV