GAME Australia under administration
PwC confirms that the Australian arm of the British games retailer has entered administration.
Accountancy firm PricewaterhouseCoopers (PwC) has been appointed voluntary administrator of GAME Australia, confirming earlier reports that the game retailer has entered administration.
According to PwC, GAME will initially continue to operate its 92 stores across Australia as the company tries to find a solution for its future.
"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," PwC partner Kate Warwick said.
Warwick also stated that prior to PwC's appointment, GAME Australia had been "exploring interest in investing in the business with a number of parties."
"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."
Warwick confirmed that PwC is working on schemes aimed at giving GAME Australia customers some return on claims, including loyalty cards, gift cards, and vouchers. Further details will be available to customers online or in-store soon.
The UK games retailer first ran into trouble in March, causing the UK business to remove its stock from the London Stock Exchange and call for administrators.
At the time, it was understood that the Australian branch of the business would not necessarily be affected, with managing director of GAME Australia Paul Yardley telling GameSpot AU in March:
"The choices that GAME UK entities are making don't necessarily impact us here," Yardley said. "In case the UK entities do go into administration, the Australian management team and I are working hard on a number of viable alternative options for our business. We are fortunate that we have strong relationships with local publishers, and continue to work closely with them. We will keep stocking the latest releases, as well as honouring all our pre-orders."
GameSpot AU will continue to update this story.