In a significant blow to the UK high street, the computer games retailer GAME is permanently closing its last three standalone stores next month after collapsing into administration for the second time. The affected branches are located in Dudley, Sutton, and Lancaster, with final closures scheduled for April.
Administration and Store Closures
GAME, which was founded in 1990, entered administration earlier this year, marking its second such collapse. The retailer first faced administration in 2012, leading to the closure of 277 stores and the loss of over 2,000 jobs. In 2020, it announced plans to shut 40 stores, and in August last year, reports indicated another five branches were set to close.
Frasers Group Takeover and Concessions
In 2019, GAME was acquired by Mike Ashley's then Sports Direct, now part of Frasers Group, in a £52 million deal. Despite the closure of standalone stores, GAME concessions will continue to operate in hundreds of Frasers-owned outlets, including Sports Direct and Frasers department stores, as well as on its website. This move aims to maintain a presence in the retail market while scaling back physical locations.
Financial Struggles
Latest accounts for GAME Retail Limited for the year to April 2024 revealed a sharp decline from an £8.5 million profit to a near £2.5 million loss. This financial downturn contributed to the decision to close the remaining stores, reflecting broader challenges in the retail sector.
Broader High Street Crisis
The closure of GAME's stores is part of a wider trend of high street businesses facing difficulties. For instance, Next has purchased the brand and intellectual property of luxury shoe chain Russell & Bromley after its collapse into administration, but only three out of 36 stores will be retained. Meanwhile, street fashion chain Quiz is on the brink of collapse, threatening 1,000 jobs due to tough trading conditions and soaring costs.
Other Retailers in Administration
Car park operator NCP has also fallen into administration, putting 682 jobs at risk. The company, which operates around 340 car parks nationwide, has struggled with low occupancy rates since the Covid-19 pandemic and mounting losses. Administrators from PwC have been appointed, and while all sites remain open and staff retain their positions, the viability of each location is under review, with potential closures on the horizon.
Administrator's Statement
Zelf Hussain, joint administrator and partner for PwC, commented on NCP's situation: "NCP has faced a challenging trading environment over several years, with changing consumer behaviours impacting volumes, and a high fixed cost-base leading to trading losses. Our priority on appointment is to ensure continuity of service while we undertake a detailed review of the business. All sites are open, staff remain in post, and trading continues as normal. We will be engaging with landlords, employees and other stakeholders as we explore all options, including the potential sale of all or part of the business, to secure the best possible outcome for creditors."
This series of closures highlights the ongoing struggles in the UK retail landscape, driven by economic pressures and shifting consumer habits.
