Game closes 277 stores
Reward Cards, pre-orders, trade-ins suspended
High street retailer Game's administrators started the company shakedown in frantic fashion today, announcing the immediate closure of 277 stores in the UK and Ireland, and suspension of refunds and exchanges, store credit and the company's Reward card scheme.
While points can still be earned through purchases in Game's remaining 333 Game and GameStation stores, they will be non-redeemable until further notice.
Hardware trade-ins have also been suspended, as has the Click and Collect titles service, advance orders and gift cards. There will also be a disruption to online sales, the administrators warned.
The closures means 2104 staff will be made redundant. The company's CEO, Ian Shepherd, quit this morning. 2814 staff will remain on the company's roster.
Meanwhile, the administrators said they are talking to a number of parties interested in purchasing part or all of Game's remaining business and assets.
The Royal Bank of Scotland is considering a takeover through a consortium of banks that are owed £85m by the retailer, Sky News reports. ®
Insert Coins To Continue
You have to think that it takes a special kind of stupid to be the only national high street computer games retailer and make a balls up of it.
No doubt they'll blame piracy, online retailers, the recession. But the fact is Game went under because of Game.
In a gaming market that has expanded greatly and where even my 60 year old mother-in-law has a Nintendo DS which she plays "Brain Training" games on, Games demographic was stuck firmly with spotty teenage boys who need a wash.
Computer games have never been bigger and yet they managed to royally balls it up. Why have one profitable shop in town when you can open 3 and run all of them at a loss just doors from each other.
Re: Suspension of Refunds, Exchanges?
Its a shame people are not more aware of this when buying gift cards. It is an unsecured loan which doesn't pay any interest.
This same thing happened with Zavvy a few years ago, so it was hardly a bolt out of the blue when Game got into trouble. Why would anyone lend them money for free?
Yeah, sure, it means you don't have to choose what to buy for that person you love so much.
Game Retailer now available preowned...
RBS owning a trading rump of Game/Gamestation makes good sense from a business point of view. The business model isn't hopelessly screwed, and won't be until the next generation of consoles are established. It just needs to be managed much better than Game were for the last few years - cut the number of stores to the most profitable one in each town, make sure the staff know their stuff, ensure that customers can order games online in-store if the web price is better or you're out of stock (capture those sales at a reduced margin, rather than have them go home and order it from a competitor), make the customers feel like part of a club or tribe (Gamestation already seem to have a bit of this vibe), and really, really try to find a little time to dedicate to not screwing over the suppliers - maybe scale back the preowned a little bit, eh?
If they can do all that, they'll turn a bit of a profit again, RBS will get some cash back instead of writing off £80m, and we'll save on dole money for nearly 3,000 staff. That sounds like an ideal outcome for the taxpayer to me.
Too many stores
Just looking at the list of stores closing and it looks sensible to me.
In Coventry, Game had 2 branches of Game and a branch of GameStation within 5 minutes walk of each other in the city centre, with the only vaguely viable competition in the form of HMV (that I can think of).
While I am sure they will lose a bit of HMV its nothing like as much as running 3 stores within very close proximity.
Re: Suspension of Refunds, Exchanges?
Unfortunately as I understand it your statutory rights mean bugger all when administration kicks in. The company you bought it from technically wont exist in its current form after today. All creditors have to get in line for anything they feel that GAME owe them and as an indivdual consumer we are way down the food chain after suppliers, lawyers, the administrators themselves, etc.