Computer games retailer Game Group has gone into administration - putting dozens of jobs in the city at risk.
Mike Jervis and Stuart Maddison of PwC were appointed joint administrators of the group’s UK and Ireland operations with the company suffering “serious cashflow and profit issues”.
The appointments were made following the company’s announcement on March 21 that the listing of its securities on the main market of the London Stock Exchange had been suspended from trading, and a filing of a notice of intention to appoint an administrator had been made.
The group, with a turnover of £1.6 billion in the year to January 31, sells video games and video games hardware trading under the names of Game and Gamestation.
The retailer has 38 shops in the West Midlands, including nine in Birmingham, out of a total of 609 stores throughout the UK and Ireland.
Mike Jervis, joint administrator and partner at PwC said: “The group has faced serious cashflow and profit issues over the recent past.
“It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.
“Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one, the UK.
“As a result we are hopeful that a going concern sale of the business is achievable.”
The group’s head office is based in Basingstoke with operations in the UK, Ireland, Spain, Portugal, France, Czech Republic and Australia.
There are 385 employees based in the group’s head office and 5,136 store employees across the UK and Ireland.