Struggling high street retailer Game has officially entered administration after failing to find a buyer and will has begin closing stores with immediate effect.
277 of the company's 609 UK stores will close as of right now with 2,119 employees to be made redundant at the end of the week. The fate of the rest of the outlets remains undecided
The company's website is down, previously placed online orders are being reviewed while stores will no long offer refunds or exchanges, neither will it honour gift cards or reward points.
The company owes £85m to a number of banks and a further £95 billion to suppliers, bringing its total debt to an astonishing £180m. The company is unable to manage the debt any longer and could not make the due rent payment of £21m this quarter, leaving 6,000 jobs in total under threat.
Now Game is in the hands of administrators, the future of the remaining 400 or so stores remains in question. The company may be taken over by a consortium led by the state-owned RBS - one of 7 banks owed money by the Game group. American retailer GameStop is also reported to be interested as well as the OpCapita group, which owns Comet.
Mike Jervis, partner at one of the joint administrators PwC said: "Game Group had two fundamental problems. First of all there was a very ambitious overseas expansion into seven territories in addition to the UK.
"On top of that the UK store portfolio is very extensive. That footprint and that high fixed cost is very difficult to maintain."
Game's problems came into the public eye in the couple of weeks after EA declared it would not be allowing the retailer to stock its new titles, meaning gamers had to look elsewhere to get their hands on Mass Effect 3.