GAME exits administration as OpCapita promises no more job losses
As was expected, GAME has now exited administration as OpCapita has bought the UK assets of the GAME Group PLC for what is expected to have been £50 million - consisting mostly of debt repayments.
The deal is not good news for suppliers or employees who lost their jobs in the store closures before the deal. The former will have to write off around £40 million and the new owner is not responsible for the latter or any related redundancy claims.
However, OpCapita, which also owns electronics retailer Comet, has assured the remaining staff, believed to number around 3,200, that there will be no more GAME or Gamestation store closures in the UK. It will also be re-employing some of the more senior head office workers axed last week.
"We are pleased to have reached agreement with the administrator," said OpCapita managing partner Henry Jackson. "We strongly believe there is a place on the high street for a video gaming specialist and GAME is the leading brand in a £2.8 billion market in the UK.
"We have assembled a strong team of experienced industry operators to implement the programme of operational change that is needed. There is a huge amount to do but we look forward to the challenge of restoring GAME’s fortunes in partnership with its employees and suppliers."
A fresh management team will be installed by the new owner, and is believed to include ex-Halfords’ chief executive David Hamid.
Administrator PwC is still looking to sell the remaining 1,270 overseas stores.
Is this good news? Are you happy to see GAME continue in the UK? Let us know in the comments below...