Game Australia goes into administration

Published on Tue, 15/05/2012, 04:47:36

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Gaming retailer Game has gone into administration leaving the fate of more than 500 Australian employees hanging.

PricewaterhouseCoopers released an official statement confirming its appointment of company partners Kate Warwick and Greg Hall as voluntary administrators of TGW Pty Limited, trading as GAME, which has 92 Australian stores.

Warwick said PwC would strive to maintain “business as usual” for the retailer.

“Initially we will continue to trade all stores, operating these on as close to a 'business as usual' mode as possible whilst we get a clearer understanding of the current state of the business and actively pursue options to secure its future,” she said.

“Prior to our appointment, the company’s management had been exploring interest in investing in the business with a number of parties and we will look to see whether this interest can be harnessed to continue the business or part of it through the voluntary administration process.”

“While we are still investigating the causes behind the Australian administration; the impact of the administration of its parent, an ambitious national roll-out combined with the current soft retail environment appear to be key factors.

This comes after its parent company in the UK filed for administration in March this year.

While the future for the retailer’s staff is under question, it is also unclear where Game’s customers are left following today’s news, with many Australian consumers still holding loyalty cards, gift cards and vouchers.

Speaking about these liabilities, Warwick said: “We are working on schemes aimed at giving customers some return on these claims if they are used to make additional purchases”. According to PwC, “further details will be available to customers on-line or in store from appointment."


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