We've just gotten the official word: GAME has gone into voluntary administration, and PricewaterhouseCoopers will be the administrators of GAME. GAME will continue to trade whilst looking at potential buyers, and is looking at schemes for those holding claims on gift vouchers, loyalty cards and gift cards.
“Initially we will continue to trade all stores, operating these on as close to a 'business as usual' mode as possible whilst we get a clearer understanding of the current state of the business and actively pursue options to secure its future," said Kate Warwick, PwC partner.
“Prior to our appointment, the company’s management had been exploring interest in investing in the business with a number of parties and we will look to see whether this interest can be harnessed to continue the business or part of it through the voluntary administration process.
Warwick also commented on the issue of customers with existing gift cards.
“We are working on schemes aimed at giving customers some return on these claims if they are used to make additional purchases," she said.
According to the release, "further details will be available to customers on-line or in store from appointment".
Warwick stated that PwC will be looking into the reasons behind GAME's struggles, but believes a difficult local retail market may be part of the issue.
“While we are still investigating the causes behind the Australian administration; the impact of the administration of its parent, an ambitious national roll-out combined with the current soft retail environment appear to be key factors."
GAME Australia has also put up a Q&A section on its website, stating the following.
We are still working to clarify the status of pre-orders. At this stage we are intending on honouring certain pre-orders placed on the Diablo III and Max Payne new releases. We will provide clarity on these and other new releases in due course.
We are not able to refund customer deposits and customers who have paid a deposit for a pre-ordered item at this stage should continue to monitor the website for further updates.
Lifehacker has a valuable look at customer's rights in this situation.