GAME Australia Finds Itself in Hot Water as GAME Oxford Street Faces Possible Closure
Written Monday, May 14, 2012 By Richard WalkerView author's profile
Just when you thought that GAME UK was out of the woods, unpaid rent could be jeopardising the future of the retailer's flagship Oxford Street store in London, according to a report on The Telegraph. Apparently, landlord Lazari GP is owed £100,000 in rent payments with GAME Group administrator PriceWaterhouseCooper (PWC) refusing to pay the bill on the grounds that it only inherited the store the day after the payment was due. Bailiffs could be sent in to drill out the locks.
The reponsibility for the rent bill supposedly rests with new GAME owners, OpCapita, while Lazari GP has the legal power to evict staff from GAME's Oxford Street store to move in new tenants. As if that wasn't bad enough, GAME's Australian arm is now facing troubled times ahead too, although PwC is apparently discussing the possibility of an acquisition with a "number of parties".
"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," a PwC statement sent to MCV Pacific reads. "Prior to our appointment, the company’s management had been exploring interest in investing in the business with a number of parties and we will look to see whether this interest can be harnessed to continue the business or part of it through the voluntary administration process.
"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.
"We are working on schemes aimed at giving customers some return on these claims if they are used to make additional purchases."
Downsizing seems to be a likely strategy for GAME Australia should it survive, meaning employees could face losing their jobs. A restructuring of how the retailer does business could also be an inevitable measure going forward. Here's that picture of GAME on Oxford Street that you all love. Again.