After filing for administration earlier this month, the administrators for Australia’s GAME have announced the closure of over 60 stores and layoffs of over half the workforce. With the downsizing, 264 are being made redundant from the retail sector and 17 being let go from their head office in Castle Hill, New South Wales.
The recent turmoil GAME Australia is going through mirrors the same situation that GAME UK went through recently, getting suspended from the London Stock Exchange and many in-store protests resulting with administrators making employee’s redundant. Administrators Pricewaterhouse Coopers made the decision after the first meeting of creditors this past Wednesday. With no buyer stepping up to invest in GAME, PwC had no choice but to slash the Aussie workforce in half. Speaking about the recent cuts, voluntary administrator Kate Warwick said:
This is a difficult time for employees and closing the stores was not a decision we made easily. However it is not financially viable to continue to operate at this level at this time.
With half of the workforce affected by the recent downsizing, those still in work at GAME Australia will be fearful for their jobs. Rumors also report that rival gaming retailer GameStop might be interested in certain areas of the company, leaving a possible way out for GAME. On the side of the consumer it’s bargains galore, with many games selling for cheap to simply move product from the affected stores.
We hope all those involved in the recent layoffs find their way back to work soon.