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The Game retail chain in Australia will be cut down to a minimum amount of stores or closed if unprofitable an administrator for the troubled UK retail group has told ChannelNews.Currently, there are over 115 stores operating in Australia, in the UK Game has moved to close over 300 of their 609 stores after being placed into administration earlier this month.
“Australian stores that are profitable could stay” said an administrator at PWC in the UK.
During the past week adminstrators have been trying to find a buyer for the remaining branches of the video game retailer but no one has stuck their hand up.
Mike Jervis, joint administrator and partner at PWC said: “The group has faced serious cashflow and profit issues over the recent past. It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.
He said that 2,000 people will lose their jobs as 277 shops are closed, while staff at the 333 remaining stores will be hoping a buyer comes forward for the company.
