A retail giant that was a familiar sight on the high street was placed into administration owing almost £16 million.
A report outlines the final standalone days of the firm that once had 300 stores across the UK and also reveals creditors face losing £12m after its collapse.
Game Retail Limited, the game and console retailer which had stores around the country struggled in a changing market and with changing habits.
A move towards digital and a tightening of the retail economy squeezed the business first into a 2011 administration, and then, despite building back profitability, another collapse.
High street retail giant collapsed into administration owing £16m (Image: Getty Images)
James Saunders and Lauren Wentworth, of KR8 Advisory, were appointed joint administrators in April, and now their report details the final efforts made to save the company.
In the end, the company owed £15.8m when it was placed into administration, including £3.5m to the secured creditor and £12m to unsecured creditors.
The administrators told how the company was incorporated as Game Retail Limited after its acquisition in 2011.
They said: “The Game brand was originally established in 1990 and developed into the UK’s leading high street retailer of video games and consoles.
“The company started trading in 2012 following the acquisition of the UK trade and assets of the former The Game Group Plc out of administration.
“At the point of acquisition, the business operated over 300 retail stores together with two e-commerce platforms under the Game and Gamestation brand names.
“Following the completion of the acquisition, the company consolidated its operations under the single Game brand and undertook a financial and operational review, which resulted in the closure of certain loss-making stores but included plans to open new stores.”
Profitability
The business subsequently returned to profitability but for the year ended July 2016, it reported a decline in revenue of 10% to £584 million and a drop in profit before tax of 71% to £6.8m.
By the following year, turnover was at £493m and the company was operating at a loss before tax of £7.1m.
The administrators said: “Market conditions remained difficult in the subsequent years driven by changes in consumer behaviour, including the transaction from physical games to digital downloads, uncertainty associated with Brexit, and increased competition within the sector.”
By 2019 the loss had widened to £43m and turnover was £423m, and after other efforts it was later agreed that shareholder Frasers Group would acquire the company’s intellectual property for a cash consideration “to support the ongoing business and make payment of outstanding rent due on the head office”.
The administrators said: “Despite these efforts, the company’s financial position continued to deteriorate during the final quarter of 2025, which historically had been one of the busiest trading months for the business.
“There have been no major console releases since 2020, and large manufacturers have cited global chip shortages as a reason for further delays.”
At this stage the position of the physical product in the market would be set to change and we are now at digital-first launches. Concessions remain across the country after Frasers pivoted to keep the brand alive.
“Having reviewed the company financial and operational position,” the administrators said. “It was concluded that the business was no longer viable.”
The administrators also said: “The secured creditor notified the board it was no longer in a position to support the ongoing funding of the company.”
The administrators said it is “anticipated there may be sufficient realisations available to enable a distribution to be made to the secured creditor” but added: “It is currently anticipated that there will be insufficient funds available to enable a distribution to be made to unsecured creditors, other than by way of the prescribed part.”
