GAME's Stores Not Closing This Week, No Decision On Liquidation Until June 19

Yesterday Gamespot received an anonymous tip claiming GAME was on the brink of liquidation, and that all Australian stores would be closing by the end of the week. GAME's administrators at PwC, speaking to Kotaku, have claimed this is not the case. There are no plans to close the stores at this stage, and decision to go into liquidation can't be made until the next creditors meeting later this month.

According to PwC's Meghan Senior, the stores are not closing this week, and any decision on liquidation will not be made until the next Creditors meeting on June 19, if it's made at all.

"Someone's been going around saying that GAME is going into liquidation, but that decision won't be made until the next creditors meeting," said Meghan.

Meghan state there are still prospective buyers, but even if no buyers are found, there are still options involved that may help GAME avoid liquidation — one of those options is handing the company back to the original Directors, if the company can prove that it will be sustainable.

There is a possibility that GAME's current sale, which started as 25% off sale and then quickly moved to 40%, is the starting point for rumours of GAME's imminent liquidation, and there is a possibility that still might occur but, for now, the stores will remain open.

"I've been informed that the 40% sale is simply an attempt to move stock and get customers into the stores, it's not a closing down sale," said Meghan.


Comments

    I think the reason "someone's been going around saying GAME is going into liquidation" is because the terms "under administration" and "going into liquidation" are so closely linked that most people assume they're the same thing.

    The insurance company I work for insure a number of compannies under administration and they're still trading - in some cases far better than they were previously. Sometimes they just need a little injection of capital to jump start them and then they can be sold off to recover the losses of the owners/investors.

    OMG IT'S HARLI

    HARLI IS WRITING ARTICLES

      Thanks for the heads-up - I didn't notice.

      HI HARLI

    Has anyone noticed the huge sale B isputting on at the same time - I say huge but in reality the discounts are not that good - but it is clear they're really trying to keep their sales figures up at a time when Game is on the ropes and trying to do the same.

      ha ha - Meant to say EB - the sale EB is putting on.

    Eb are playing it smart by stopping game making money off the sale to revive itself. Well played EB

      Dude, take it from me as a former employee. They can't revive themselves, they tried with a network of 100 stores, now they are trying with around 30. It's a matter of time before it's gone.

      EB always has a large mid-year sale around this time. GAME falling into administration and their large discounts occurring at the same time are nothing more than a coincidence.

        As another former employee, this person speaks the truth.

    The 40% off sale that was held at my store was simply to push as much stock out the door as possible so we wouldn't have to pack up so much stuff when we closed down the following day, this doesn't look good at all for the remaining stores.

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