GAME: No Buyers Yet, Crisis To Drag On For Another Month

We've just received an update from liquidators PwC on what's happening with GAME. The bottom line? There are some buyers circling, but nothing concrete happening yet.

The first creditors' meeting was held in Sydney yesterday, but the only decision that was made was to appoint a committee of creditors to continue working with PwC. A second creditors' meeting has been set for late June, with PwC saying June 19 looks likely. What happens there will be entirely dependent on whether someone fronts up to buy out the struggling retailer.

In a statement about the meeting, Kate Warwick from PwC said:

We've advertised for expressions of interest in the business from interested parties and the deadline for these closed yesterday. Despite the very challenging circumstances facing the retail sector, we have received various expressions of interest for parts of the business, including a number of parties expressing interest in the business as a going concern. We are currently exploring the possibility of achieving a continuity of the business as a going concern with the company's many landlords who appear pivotal to any continuation. We are also currently examining the other expressions of interest and we expect to make a decision on the future of the business in the coming days.

Reading between the lines, that suggests there's a lot of unpaid rent for existing GAME stores.

It's been a nasty week since GAME went into administration, with concerns over refunds for pre-ordered games and the future for staff at the chain. It seems clear the uncertainty will continue for a while.


Comments

    I really hope Game gets saved. Australian retail needs Game to survive.

      What are you, a GAME employee? Australian retail would not be phased if GAME disappeared.

      just got a done call from my area manager saying that game is closing down which mean i am outa a job... The end has come for us and our company :(

    Who wants to buy something that is dead?
    The retail games industry is doomed, give it another 5 years and it wont make any sense to sell games through retail other than hardware, which will likely see hardware increase in cost to cover some sort of margin.

      I don't really know about that. Australia's telecommunications infrastructure is still kind of a bit crap (well, reasonably good in the grand scheme of things actually), so complete digital distribution within 5 years is pretty unlikely. It's big business in the US where internet is charged more by speed than data allowance, but to base an entire distribution business model around one country (that said, probably your largest market though) would be a bit silly.

        Also I imagine entering the games retailer business is a lot easier if you already have an established name.

          I don't think it will be %100 but it will be enough to kill off speciality stores with only the retail giants like Target, BigW etc... bothering to stock it. It's happening in the US with Gamestop selling Steam cards, the writing is on the wall...

      As my hard drive crash yesterday I lost 100s of gigs of game data, most of it digital downloads. It sucks, and would much prefer to have the physical copy. That's not to say digital distribution isn't awesome, or cheaper. But physical stores are getting better, you can buy the Witcher 2 cheaper at Jb Hifi than online, and recently other games have been dropping to equivalent or lower prices.

    I wouldn't be surprised if Woolworths or Coles/Myer are sniffing around...

    It would be interesting to know how much EB games offered as it would tell us how well they're doing.

      Woolies won't buy them. Woolworths has been pushing Big W as the go-to consumer electronics shop in the business, and considering DSE's are closing down all over the place (not to mention their horrible games clearance sale, and high prices on regular games anyway), there's no reason for them to buy out Game.

      EB won't buy Game. It's more in their interest to let it falter and die. Game stores were opened (especially in rural areas) to compete with EB - and they failed. Eb wont buy them because there's no point buying a bunch of stores only to close them.
      I was told this specifically by an EB Area Manager when I worked for the company, so I wouldn't hold your breath for an EB buyout.

        Depends on the terms of the sale and the price being asked. I can certainly imagine EB jumping in if they feel the price asked is worth getting acquisition to all of the GAME stock. A whole stack of new and pre-owned stock at a fraction of the cost of buying from the local distributors?

        But as mentioned, it would be down to the terms of the sale and they are obviously looking for someone to take on everything, debts included.

    I work in corporate insolvency and I think you will find that these things tend to draw out for an extremely long time. Businesses in this situation have a habit of terrible accounting and PwC will likely still be trying to work through all of the current tenancy agreements, stock contracts and they need to give creditors a chance to submit their proof of debts. There's also the possible scenario that they don't know which stores are profitable and once established, they will offer those for sale and shutdown the rest.

      I'm getting old. I actually found all of that genuinely interesting.

        I had the exact same thought! Thanks for the comment Azza.

    I want my damn Diablo CE or my money back already. Ugh...

    Game employee here. Been a really shitty week. Most of the issues we have had are with parents who don't read kotaku or know anything about game for that matter.

      Can you go into a little more detail? I'm really curious as to the day-to-day experiences you have with customers ...

      Sorry to hear that mate. Hope it all works out in the end.

      I can second that comment, I've been bullied by so many parents just trying to get their way since we went into admin. Said some horrible things to me, like GAME don't care about me as I'm just a number and I'm going to lose my job regardless. Thay may be so, but that's not a good way to get me to help you...not that I can...

      Sorry to hear that mate, it's always the poor person who deals with the customers who takes the heat for the screw ups of management that they have no control over.

    man am just looking for their Closed down sales i couldn't careless if they make it or not same with EB because i normally import game from over sea which are cheaper then Australian prices To me buying any games in Australia Cost a lot of money . just give me the Sales worth having

    This is what happens when you don't offer expensive franchisee contracts to the public

      GAME are corporate fool.

    GAME has had the option of importing games for years from various overseas contacts and could of done it cheaper than anybody because of this, but chose to support local distributers and manufacturers instead; now seems that by doing this it will now be they're death. GAME aus was in no trouble til the UK branch went down - the ripple effect of that is the only reason this has occured. - A current Employee :( I Hope the brand can be saved because its an awesome company to work for. :)

    Also Game employee here. Thankfully majority of people who come into my store are very supportive of us and are very understanding of the situation. We do get some people from time to time come in who don't understand whats happening and get mad when we can't offer what they are asking, but it isn't all the time.

    Most of the bitching about Game I've seen is online, where people hide behind their monitors :)

    I just read it say's "don't" my bad

    why is it getting shut down in jondulup

    Game sucks, they sell second hand games for the price of brand new.
    Even with "60%" off at the moment their games are still too expensive.
    They're not genuine they never were, that's why they fail.

    The staff on the other hand were always great, that's the one thing I'll miss.

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