Major UK retailer collapsed into administration with £16million in debt as stores leave high streets
An iconic high street retailer in the UK which operated hundreds of stores collapsed into administration , owing an estimated £16million to creditors, a new report has revealed. Game is the latest business to face administration proceedings with debts in the millions, marking the final chapter for what was once one of Britain's most prominent high street video games chains. The company shut its remaining bricks-and-mortar locations in February. An administration report reveals that creditors stand to lose approximately £12million following the retailer's collapse. At the point of entering administration, the business owed £15.8million in total, comprising £3.5million to its secured creditor and £12million to unsecured creditors. Joint administrators James Saunders and Lauren Wentworth, partners at KR8 Advisory, were appointed in April and have since detailed their attempts to rescue the business. The Game brand dates back to 1990, though the company was formally incorporated as Game Retail Limited following its acquisition in 2011. Administrators noted that the retailer had grown into one of the UK's leading high street sellers of video games and consoles since its founding. LATEST DEVELOPMENTS PhD researchers turn Instagram baking project into a 900-store brand tackling homelessness Thames Water investors prepare legal battle with Andy Burnham over nationalisation Stock market 'bloodbath' as Wall Street 'continues to slump' amid AI tech bubble fears The business first entered administration in 2011, a process that led to the shuttering of 300 shops the following year. As the administrators explained: "The company started trading in 2012 following the acquisition of the UK trade and assets of the former The Game Group Plc out of administration." Operations were consolidated under a single brand, with loss-making locations closed and plans drawn up for new openings. The chain did manage to restore profitability before British entrepreneur Mike Ashley's Frasers Group took control in 2019. By the financial year ending July 2016, turnover had fallen 10 per cent to £584million, while pre-tax profit plunged 71 per cent to just £6.8million. The following year brought further deterioration, with revenue sliding to £493million and the company posting a pre-tax operating loss of £7.1million. The administrators noted that "market conditions remained difficult in the subsequent years driven by changes in consumer behaviour, including the transition from physical games to digital downloads, uncertainty associated with Brexit, and increased competition within the sector". By 2019, losses had ballooned to £43million on a turnover of £423million. The absence of any major console launches since 2020 compounded the difficulties, with leading manufacturers pointing to global chip shortages as the cause of further delays. Frasers Group, led by Sports Direct owner Ashley, agreed to purchase Game's intellectual property for cash in an effort "to support the ongoing business and make payment of outstanding rent due on the head office". The group attempted to preserve the brand by relocating a majority of remaining branches into Sports Direct stores as concessions, which continued to trade. By April 2025, most remaining staff were transferred to zero-hour contracts, and the management team was subsequently reduced. Our Standards: The GB News Editorial Charter
An iconic high street retailer in the UK which operated hundreds of stores collapsed into administration , owing an estimated £16million to creditors, a new report has revealed. Game is the latest business to face administration proceedings with debts in the millions, marking the final chapter for what was once one of Britain's most prominent high street video games chains. The company shut its remaining bricks-and-mortar locations in February. An administration report reveals that creditors stand to lose approximately £12million following the retailer's collapse. At the point of entering administration, the business owed £15.8million in total, comprising £3.5million to its secured creditor and £12million to unsecured creditors. Joint administrators James Saunders and Lauren Wentworth, partners at KR8 Advisory, were appointed in April and have since detailed their attempts to rescue the business. The Game brand dates back to 1990, though the company was formally incorporated as Game Retail Limited following its acquisition in 2011. Administrators noted that the retailer had grown into one of the UK's leading high street sellers of video games and consoles since its founding. LATEST DEVELOPMENTS PhD researchers turn Instagram baking project into a 900-store brand tackling homelessness Thames Water investors prepare legal battle with Andy Burnham over nationalisation Stock market 'bloodbath' as Wall Street 'continues to slump' amid AI tech bubble fears The business first entered administration in 2011, a process that led to the shuttering of 300 shops the following year. As the administrators explained: "The company started trading in 2012 following the acquisition of the UK trade and assets of the former The Game Group Plc out of administration." Operations were consolidated under a single brand, with loss-making locations closed and plans drawn up for new openings. The chain did manage to restore profitability before British entrepreneur Mike Ashley's Frasers Group took control in 2019. By the financial year ending July 2016, turnover had fallen 10 per cent to £584million, while pre-tax profit plunged 71 per cent to just £6.8million. The following year brought further deterioration, with revenue sliding to £493million and the company posting a pre-tax operating loss of £7.1million. The administrators noted that "market conditions remained difficult in the subsequent years driven by changes in consumer behaviour, including the transition from physical games to digital downloads, uncertainty associated with Brexit, and increased competition within the sector". By 2019, losses had ballooned to £43million on a turnover of £423million. The absence of any major console launches since 2020 compounded the difficulties, with leading manufacturers pointing to global chip shortages as the cause of further delays. Frasers Group, led by Sports Direct owner Ashley, agreed to purchase Game's intellectual property for cash in an effort "to support the ongoing business and make payment of outstanding rent due on the head office". The group attempted to preserve the brand by relocating a majority of remaining branches into Sports Direct stores as concessions, which continued to trade. By April 2025, most remaining staff were transferred to zero-hour contracts, and the management team was subsequently reduced. Our Standards: The GB News Editorial Charter
Source: Gb News