Entertainment Marketing: Movies, TV, Music and Gaming

Reports claim that Game Group is two weeks away from administration


By The Drum Team, Editorial

March 9, 2012 | 2 min read

High street video game retailer GAME Group is said to be on the brink of administration after management told senior staff that it has just two weeks to turn its fortunes around.

Reports claim that CEO Ian Shepherd has told staff that the company, which owns both GAME and GameStation, to prepare for administration, as it began a ‘fire sale’ with the reduction of stock prices.

In recent weeks the retailer has been unable to stock the titles of EA Games, an issue that it described as ‘temporary’ last month.

At the time, the company said: "As part of the strategic plan development process which it announced on February 3rd, the Group has been working closely with its suppliers, as well as other stakeholders.

"In particular, the Group has been discussing with its suppliers the level of support and engagement it needs from them over the coming months. There have, during that process, been isolated instances where it has not been possible to agree launch plans for individual game titles.

"Today the Group confirmed that it will not be stocking a small number of titles from one supplier, Electronic Arts, during March and notes that this has caused speculation in the market.

"This situation, which is a result of ongoing discussions between the Group and EA, is a temporary one and indeed both businesses are already engaged in discussions about future launches together. It is always a matter of regret when customers are inconvenienced, and both the Group and EA are committed to ensuring that this situation does not occur again."

The company currently works with TBWA as the advertising agency for both Game and GameStation.

At the time of writing, The Drum was waiting on a statement from GAME Group in response to reports.

Entertainment Marketing: Movies, TV, Music and Gaming

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