GAME on: struggling retailer may be sold
- — 24 May, 2012 12:30
There is a glimmer of light at the end of the tunnel for embattled video game retailer GAME, with several expressions of interest made at the company's first meeting of creditors yesterday.
The first meeting for TGW Pty Ltd (Administrators Appointed) was held yesterday by administrators Kate Warwick and Greg Hall, who are partners of firm PricewaterhouseCoopers. Ms Warwick said that despite difficult circumstances for retail in Australia, the administrators had received expressions of interest in parts of the business and for the business as a whole:
“We’ve advertised for expressions of interest in the business from interested parties and the deadline for these closed yesterday. Despite the very challenging circumstances facing the retail sector, we have received various expressions of interest for parts of the business, including a number of parties expressing interest in the business as a going concern.
We are currently exploring the possibility of achieving a continuity of the business as a going concern with the company’s many landlords who appear pivotal to any continuation.
We are also currently examining the other expressions of interest and we expect to make a decision on the future of the business in the coming days.”
A second and final creditors’ meeting will be held in mid-June, with the to-be-confirmed date expected to be around the deadline of 19 June. The first creditors’ meeting appointed a council of creditors to liaise with administrators, and a report will be prepared for all creditors before the second meeting containing recommendations from administrators on the appropriate course of action — likely selling the entire business, or as much of it as possible based on expressions of interest.
GAME Australia has been trading on an “as close to business as usual” basis since it was placed into administration 10 days ago. All GAME stores around Australia remain open, and supplies of video games continue to be received.
In a statement to creditors, administrators said that “where necessary” the company would purchase goods and services “that are required during the period of the administration.” Suppliers are being paid for goods ordered and delivered after administrators were appointed, but any debts up until the appointment are frozen.