GAME Australia business receives expressions of interest

First creditors meeting revealed a number of interested parties intent on saving GAME Australia's struggling business; continuity of the business as is remains a possibility; decision will be made in coming days.

GAME Australia's struggling business has received a number of expressions of interest from parties that are keen to rescue the games retailer.

The local business entered voluntary administration earlier in May, after months of financial struggle and the collapse of its UK counterpart. Administrators Pricewaterhouse Coopers (PwC) held the first creditors meeting yesterday, where voluntary administrators and PwC partners Kate Warwick and Greg Hall analysed expressions of interest that had been advertised previously.

"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," Warwick said.

According to the firm, GAME Australia could continue to operate as a business.

"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."

Warwick said the firm is currently examining all expressions of interest and will make a decision on the future of the business in the coming days. The parties who have expressed interest in GAME Australia, have not been named.

A second meeting of creditors is scheduled to be held in June.

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Discussion

5 comments
strayfies
strayfies

HOW?

 

I've only heard of GAME twice.  The first was when they dropped the ball on ME3.  The other time was when they dropped the ball on Diablo 3 and raised the white flag.  Am I in the wrong business?  If I did half as badly, I'd be out on the street and here's these guys getting pulled out of the frying pan.

ts997
ts997

the only way i could see this recovering is if they sell each store off as a franchise that way they could recover the cost of stock and fittings and could make money for the owners of the company. Who would want to buy a large amount of stores, i think it would be safer to brake it up.

JasonDarksavior
JasonDarksavior

The problem with GAME is that it offers nothing at all. It is not cheaper than EB, JB or any other retail outlet with most titles being $99. Their trade values are not especially enticing. They need to establish something they are strong in.

 

For example, JB has the cheapest games. Future Soldier was released today at JB for only $69 AUD. 

 

 

davedrastic
davedrastic

Just put it out of its misery already. GAME has a good name, is highly recognised etc, but it's not making any money and nor are the other game retailers, and the country is being swamped by established online game retailers, with digital distribution due to take over the market any minute.

 

Buy it now and it will just have to be killed off a few years down the line.

Mr_Q_Oz
Mr_Q_Oz

While it's bad news for GAME I can't really imagine why any investors would be looking at getting into a retail games business at this time.