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UK video game retailer Game Group files for bankruptcy

Written by Andre Yoskowitz (Google+) @ 26 Mar 2012 14:42 User comments (3)

UK video game retailer Game Group files for bankruptcy The company had been teetering on the brink for months now.
Game Group, based in the UK, has filed for bankruptcy protection, with UK and Ireland operations being turned over to Pricewaterhousecoopers, the massive accounting firm.

The company was behind the brands of GAME Group plc, Game Stores Group Limited, Gameplay (GB) Limited, Game (Stores) Limited, Games Station Limited, Game (retail) Limited and Gamestation Limited.

Pricewaterhousecoopers (PWC) has already closed down 277 of the company's 610 stores and has taken down the company's website for much needed maintenance. In addition, 2,104 employees are getting laid off.

"A number of parties who have expressed an interest in purchasing part or all of the business and assets of the group," added PWC (via TC). The gaming retailer had suspended trading of its stock on March 21st.

The company went bankrupt due to "serious cashflow and profit issues" brought on by high fixed-costs, "fluctuating capital requirements" and an international strategy that bombed.

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3 user comments

126.3.2012 16:30

the pattern will only continue once second-hand titles are barred by the console manufacturers.

226.3.2012 20:59

was expecting this

327.3.2012 8:39

I wonder what effect this has on the Australian Game stores.

They don't sell PC games at all in them and only offer the consoles games, so cutting out a huge chunk of the market straight up.

No idea if the UK stores dropped the PC.

As for the used games I don;t think game stores can really rely or depend on used games to get by.

EB Games(game stop) in Australia must be doing it tough as they have had a perpetual sale on for the last 2 years or there abouts.

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