UK video game retailer Game has entered administration. In the UK, administration is the same thing as bankruptcy in the US. Game has been having serious financial issues for a while now after poor sales during the holiday season of 2011 resulted in some game publishers not allowing the company to buy their video games. Reuters reports that the company has now entered administration, and 10,000 employees face an uncertain future.
Game had reportedly been trying to sell, but it appears that didn’t work out. In the UK game has 600 stores and about 6000 employees with locations in nine other countries in Europe as well as Australia. The company is going into administration with PwC as the administrator. The company notified shareholders last week that it was going into administration only hours after it declared its publicly traded stock shares worthless and suspended trading.
Strangely, one source said that on the day Game announced it was entering administration, the company’s lenders had rejected an offer from a private investment firm called OpCapita to buy the retailers debt and pay suppliers. There have also been indications Gamestop could be interested in purchasing some of Game’s stores. At one time last week Walmart’s name was also in the running as a potential buyer.