We have been mentioning the worsening crisis at GAME for quite a while, but it now seems that the worst is starting to happen. Word into KitGuru is not good. So what’s the situation and where will GAME go from here?
KitGuru posed the question, ‘Can Channel Island ruling save Game?‘ only recently. In that story, we detailed the way that smart retailers had combined with potato farmers et al to create a situation where the UK high street stores could not longer be competitive and survive.
Simple loopholes/exploits in VAT and Royal Mail fixed price shipping had been used to allow certain onliners to create trading conditions that were simply too fierce for GAME.
HMV is in a similar boat, but may yet trade its way to safety.
Naturally, trading in GAME shares has ceased and anyone with a GAME loyalty card would be well advised to cash in any benefits that they are sitting on – while there is still a store to enter.
GAME has issues a statement on its situation, telling the world:
“Further to this morning’s announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business. The board has therefore today filed a notice of intention to appoint an administrator.
In the short term the Board’s intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium”
KitGuru says: So, there you have it. Progressive governments – Tory and Labour – have ignored the loopholes and, as a result, many more people face unemployment as the high street carries on dying.
Comments below or in the KitGuru forums.