GAME Retail has collapsed into administration with debts of nearly £16 million, according to a report from joint administrators James Saunders and Lauren Wentworth of KR8 Advisory. The company had liabilities of about £15.8 million when it formally entered administration on February 24, with around £12 million owed to unsecured creditors.
Changing consumer habits and competition blamed
The administrators cited sustained pressure from changing consumer habits, as more customers choose digital downloads over physical copies. Increasing competition and uncertainty surrounding Brexit were also highlighted as factors affecting trading.
Once the UK's biggest specialist gaming chain, GAME operated around 300 stores across the UK, including over 20 in Scotland. Its remaining standalone stores in Dudley, Lancaster and Sutton have since closed, ending the brand's presence as an independent High Street retailer.
GAME name continues online and in Frasers Group stores
The GAME name continues through its online business and concessions inside Frasers Group stores, including Sports Direct and House of Fraser. Frasers Group bought GAME's parent company in a deal worth around £52 million in 2019 and has integrated the gaming retailer into its wider store portfolio.
Before entering administration, GAME had already withdrawn several long-standing services, including its trade-in scheme and loyalty programme, as it shifted focus towards toys, collectibles and gaming merchandise.
This is the second administration in the company's history; GAME previously entered administration in 2012 before being rescued.
