GAME’s Australian Wing Still in Trouble

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Australian Games Site Smart Company, www.smartcompany.com.au, is reporting that while the British retailer Game may be safe from bankruptcy for the moment, the fate of the Australian stores remains in doubt.

According to Smart Company, "the development comes as Woolworths signaled its intention to abandon the video game market yesterday, with its Dick Smith chain selling off games and accessories with markdowns of up to 90 percent in some categories.

Both incidents highlight the precarious nature of bricks and mortar video game sellers, even as the industry itself remains one of the fastest growing in the world. Buyers are turning to alternative forms of shopping, such as digital distribution and imports, as local prices remain higher than overseas.

Game has been rescued from administration by private investment firm OpCapita, which specialises in turnaround operations in the retail sector. Under the terms of the agreement, Game’s UK operations will be sold to OpCapita’s Baker Acquisitions, and all stores will remain open.

However, the fate of Australian stores remains unknown. PWC confirmed it has not been appointed by the local division as a part of any sales process."

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