After a protracted struggle to stay afloat, GAME Australia has finally succumbed to its financial troubles. The company's administrator — PricewaterhouseCoopers (PwC) — has confirmed today that all GAME stores in Australia will close down in the coming weeks.
(Credit: GAME Australia)
PwC said that 16 stores will shut immediately, with the remaining 15 to be shuttered in the coming weeks.
"In the interests of creditors, the 31 remaining GAME stores are to be closed over the coming weeks, and a final closing-down sale has commenced with discounts of up to 60 per cent available in-store and online," administrator Kate Warwick said in a statement.
"This is a difficult time for employees, and closing the stores was not a decision we made easily. Despite exploring available opportunities for continued trading, the ongoing trading performance and absence of viable offers for the purchase of the business has resulted in these closures."
GAME Australia went into administration in May this year, following similar financial troubles with its UK parent company. PwC was exploring avenues to keep the business afloat, including finding a buyer for the stores, but rumours that it was unsuccessful began circulating earlier this month.
PwC has been in touch with the Federal Government department that deals with general employee entitlements and redundancy schemes (GEERS) and will assist the employees with their applications.
According to PwC, another meeting of creditors is scheduled to take place today in Sydney to decide the future of GAME Australia.
cyclobs wrote:we've known about GAME financial problems for a long time now.. it's not really surprising to see this announcement tbh
Artful-dodgeR wrote:Yesterday I went in to see if I could pick up a PS3 blu-ray remote, which they had run out of. I sat in a line of about 3-4 people, 2 of them made pre-orders for up coming games. I couldn't believe it, but didn't mention anything because TBH they don't like me there anyway (I told them about the initial collapse of GAME prior to their own company, real smart bunch there).
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