Video game retailer Game will close 60 stores and scrap 281 jobs as administrators start investigating the company’s financial turmoil.
The announcement comes two weeks after the company was placed in administration at the hands of PwC, and months after the local managing director failed to find a buyer for the Australian division.
Administrator Kate Warwick said in a statement the administrators had started a performance review of individual stores, along with talks with potential buyers. But this meant the 60 stores could not stay open, and 264 staff would lose their jobs.
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A further 17 staff from the company’s head office would also be made redundant, she said.
“This is a difficult time for employees, and closing the stores was not a decision we made easily, but it is not financially viable to continue to operate at this level at this time,” she said.
“PwC has been in touch with the Federal Government department that deals with the General Employee Entitlements and Redundancy Scheme and will assist the employees with their applications.”
About 30 stores still remain, along with more than 200 staff.
Game had been in financial strife for months. Its British parent was placed in administration earlier this year. Although the local group had attempted to find a buyer, this process failed and led to it falling into administration.
The collapse has been blamed on the depreciation of the Australian dollar, which has led more consumers to buy video games from offshore websites, along with possible ramifications from an ambitious store rollout plan.