UK-based games retailer Game has been put into administration due to owing its debtors £15.8 million. According to The Herald, this could lead to creditors potentially losing around £12 million following the company’s collapse. This comes despite Game at one point having 300 stores across the UK, including in locations like Glasgow and Edinburgh.
The company had been put under the joint administration of KR8 Advisory’s James Saunders and Lauren Wentworth, who were working together to save it in light of more recent economic pressures faced by game retailers. KR8 Advisory is a company that specializes in coming up with and executing solutions that could help businesses survive. Some of its services include restructuring, government services, and business advisory.
Game’s overall debuts include £3.5 million to the secured creditor and £12 million to unsecured creditors.
Game was riding a wave of success after its establishment in 1990, eventually leading to its acquisition of the trade and assets of the company formerly known as The Game Group Plc in 2012. This acquisition led to a “financial and operational review, which resulted in the closure of certain loss-making stores but included plans to open new stores,” according to a statement by KR8 Advisory.
The following years throughout the 2010s saw Game’s revenue falling, with a 10 percent decline in revenue reported in 2016. The fact that the gaming market was beginning to shift towards digital copies rather than relying on physical stores to buy discs also played a role.
“Market conditions remained difficult in the subsequent years, driven by changes in consumer behaviour, including the transition from physical games to digital downloads, uncertainty associated with Brexit, and increased competition within the sector.”
The company revealed losses of around £43 million in 2019, with a turnover of £423 million. In another effort to save it, shareholder Frasers Group agreed to acquire Game and its IP “to support the ongoing business and make payment of outstanding rent due on the head office.” Things didn’t improve, however, and the lack of major console releases since 2020, as well as global component shortages cited as major reasons for the downturn.
“Having reviewed the company’s financial and operational position, it was concluded that the business was no longer viable.” The secured creditor has also noted that they are “no longer in a position to support the ongoing funding of the company.” While KR8 Advisory expects to be able to pay back the secured creditor, it believes that Game will be unable to pay all of the unsecured creditors.
The collapse of Game comes just a week after the UK’s Entertainment Retailers Association (ERA) condemned Sony’s announcement that it would be ending the production of PlayStation discs in January 2028. ERA CEO Kim Bayley said in a statement that Sony’s move was not only harmful to retailers but also harmful to consumers since it would take away the choice of physical game copies from customers.
“Removing discs doesn’t represent progress – it simply removes choice,” Bayley said. “That’s bad for gamers, bad for retailers, and ultimately, bad for the long-term health and preservation of our games industry.”
