GAME Australia’s chances of survival have been looking slimmer and slimmer in the last while, but there’s something terminal about today’s sale.
The term ‘Final Clearance’ has been applied to what began as a sale on select titles broadcast via Twitter earlier this week, and has plunged further and further into large-scale clearance territory before landing where it has today, with 60% off the marked prices of almost every single title.
While we still have to wait until next week to hear the final word on whether the company will be bought out or liquidated, a sale of this magnitude doesn’t bode well for the company, which has already had suggestions that it was preparing to liquidate circulate last week via Kotaku.
The suggestions come in the form of leaked documents which report that the Australian arm of the company has been unable to turn a profit since it was first purchased in 2006, and that the reasons for the unprofitability of the business are many, including an overall downward market trend and the previously mentioned high cost of retail leases for the store’s 90+ branches.
PriceWaterhouseCoopers, GAME’S administrators, commented: “Unfortunately this is a report for the creditors of GAME to consider and vote upon at the second creditors meeting on 19 June 2012. Accordingly it is inappropriate for PwC to comment before then.”
MCV will be reporting on the PwC second creditor’s meeting as soon as it takes place next week.
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