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Retail

GAME Australia in administration

GAME Australia in administration

Mon 14 May 2012 7:15am GMT / 3:15am EDT / 12:15am PDT
Retail

PricewaterhouseCoopers appointed, consumers refused pre-order refunds

GAME Australia has followed in the footsteps of its UK counterpart, and yesterday went into voluntary administration.

"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," Kate Warwick of appointed administrator PricewaterhouseCoopers told Polygon.

"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."

"Initially we will continue to trade all stores, operating these on as close to a 'business as usual' mode as possible"

Kate Warwick, PricewaterhouseCoopers

Greg Hall of PwC will also be involved in the process.

The first signs of trouble last night was a rumour, reported by Kotaku, that GAME Australia employees had been sent an email letting them know about the administration, and, in a mirror of UK events, the the chain would not stock massive PC title Diablo III. This was due to problems relating to shipping.

As the situation developed GAME Australia customers received a text message that stated not only would it not stock Diablo III, making any pre-orders void, it would not refund those customers that had already put down deposits. This was later confirmed by an FAQ made available for customers.

"We are not able to refund customer deposits and customers who have paid a deposit for a pre-ordered item at this stage should continue to monitor the website for further updates."

This could force consumers to register as unsecured creditors to get their money back.

THE FAQ also confirmed that the company will no longer accept trade-ins, or honour its returns policy.

GAME Australia has 92 stores across the country.

In the UK, the recently revived GAME Group has announced a significant management restructure, with five senior team members, including the CCO and operations director, departing.

"As we now look further forward, we've made some important changes to our senior team to reflect the ongoing evolution of our business. Reorganising the leadership team to match the size and shape of our new business means that we will also be bidding farewell to some friends," said UK CEO Martyn Gibbs.

6 Comments

Dominic Jakube
Student

92 13 0.1
To anyone who has been in one of their stores in the last six months this will come as no suprise.Bargin bins full of multable copies of 3 year old games no one wants, a small smattering of new releases at $20 more than the shops next door and 90% of shelf space filled with overpriced pre-owned.
Add to this no customers and useally about 3 hipster/emo staff doing absolutly nothing.
The worst part of this is the flow on effect it will have, EBgames the Australian arm of gamstop had atores in smaller centers that dont make money just to keep the competion from growing and now many of these will surly shut.

Posted:2 years ago

#1

Thomas Dolby
Project Manager / Lead Programmer

331 279 0.8
Really bad that people lost their deposits, that's barely above stealing in my books. Who will have the confidence to trust GAME Australia with their money again if the business recovers? If it was me, losing my deposit (worse still, without an apology?) would make sure I'd never even so much look at their website again.

Posted:2 years ago

#2

Sam Maxted
Journalist / Community / Support

155 65 0.4
Well there goes all their goodwill. As Thomas says, it's hardly going to engender trust in the brand, is it?

Posted:2 years ago

#3

Alex Byrom
Studying Multiplayer Online games design

33 0 0.0
Game group as a whole should be dead, there business model as it stands, clearly doesn't work. i now buy alot of my games from cashgenerator, cashconvertor and graingergames. They provide a much better and competitive service, that and just ording on-line off zavvi, amazon or steam.

Posted:2 years ago

#4

Julian Cram
Project Manager

49 27 0.6
Blizzard is offering refunds (of a sort) to Game Australia customers

http://us.battle.net/d3/en/forum/topic/5007290816

Posted:2 years ago

#5

Tony Johns

520 12 0.0
I used my credits in GAME Australia back 3 weeks ago that I didn't know I had.

I got 5 used games, 3 for the price of 2 in one purchase. And it all costed me $90 but then I used the $23 credit on my GAME card so therefore I only had to pay $67.

3 weeks ago I knew that something like this might happen, I consider myself lucky to have took advantage of their 3 for 2 deal when it was on.

Posted:2 years ago

#6

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