Gamers will be very sad to hear the news that yet another High Street chain has gone into administration; Game Group. The group owns both the Game and Gamestation stores and has 1300 stores throughout Europe, with 609 in the UK.
Administration means potential job losses for 10,000 staff.
The administrators PricewaterhouseCoopers said that the group had suffered from “high fixed costs and an ambitious international expansion.” They did however say that they were confident of a sale of the business as they believed that there was still a place for the chain on the high street.
This is a timely reminder that consumer spending remains very fickle and that businesses of all types have to keep evolving to suit an increasingly mobile and changing economy. The double glazing industry this year seems to have gone against the gloomy predictions at the end of 2011 and had a decent first 3 months to the new year. But we have to stay ultra-focused and make sure we don’t drop the ball.
Game Group can now be added to an extremely long list of high street stores which have either disappeared or at least required administration to stay alive. The online presence of Amazon and other massive retailers of games have added to Game’s pressures.
Earlier this afternoon Sky News reported on Twitter that RBS may be sniffing at the purchase of Game Group, but since that I haven’t heard any more on that front.