PwC appointed as Administrators of GAME AU

PwC has sent over official word that two of its partners have been appointed Voluntary Administrators of the retailers trading in Australia as GAME, confirming the news we reported earlier today.

The big news: At this stage, all stores will continue to trade.

GAME Australia

Business as usual, mostly

Kate Warwick from the accoutancy firm sheds a little light on what will happen to the retailer’s 92 stores and roughly 500 staff, even if things are all a little fuzzy at this early stage.

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.

It’s also been acknowledged that GAME customers hold “various claims” against the company, in the form of gift cards, vouchers and other loyalty cards. Warwick says the administrator is “working on schemes” to give customers “some return” on these claims – as long as they are used to make additional purchases.

Additional information on that situation will be available soon.

It seems the troubles faced by the UK parent company did have a trickle-down effect on the Australian retailer, despite Managing Director Paul Yardley’s promises to the contrary earlier this year.

Warwick continues:

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.

The company’s management had been “exploring interest” in selling the business (in whole or in part), says Warwick, and that is an avenue PwC continues to explore through the voluntary administration process.

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