Game Shop
Game is a British retailer of video games which has 1,270 outlets in nine Australian and European markets. The retailer is similar to Play ‘N Trade EBGames or the GameStop which is very popular in the U.S. which trades unwanted games and secondhand bargaining of video games. Currently, Game stores warned their shareholders that their equity has the potential to be worthless and they are filing for bankruptcy due to difficulties in finding new suppliers who will source them with new products. The retail store is still under negotiations with lenders and suppliers in order to resolve the issue surrounding the store regarding their limited supplies. The practice of bankruptcy has been the trend with retail stores in the entertainment industry.
The retail video games store is still discussing with their suppliers and is looking for an accessible path of getting to its original supplier and facility or any other way to facilitate their funding. It is also conducting a review of all its assets and their current position in international territories and in Great Britain. But despite all the efforts that the retailer conducts to resolve the problem, a warning to its shareholders was forwarded that there are uncertainties in the success of the solutions being explores by their board. Doubts whether the undertaking will provide positive results for the company or will any value be featured to its shares still exist.
In 2011, the video games retail store lost 94% of their shares’ value and lately closed with a margin of 3.51 pence which results to the business being valued 19.2 million dollars or 12.2 million in terms of British pounds. Another concern is the quarterly rental bill which is nearly due might push the company into administration.
The closure of so many outlets of the retailer store may lead to losing 247 jobs leaving many employees rummaging the streets to find new jobs. Although considered as only a small part of the company, it is still a major debacle in the retail store industry for it will not only affect the company and their employees but the paying customers as a whole. The major culprit in this move of the video game retail store is the tough economic condition that the company has endured in 2010 resulting to the closure of six Gamestation stores, twelve Game stores and other locations but they assure that they will make a detailed plan to back the employees and the customers.
Bordering on the Hollywood Video and Blockbuster which has closed their doors in many major locations in 2011, it is very essential to know that digital age is now creeping its way into the entertainment industry. The evidence s hows that media which are digitally acquired like Xbox Live, OnLive, PSN and Steam have now started to put their counterparts in the rental industry to the pedestal. There are so many reasons that the company has come up with the decision but who knows what really happened. Maybe they have gone wrong with their marketing strategy or it concerns their customer service. But these closures will be a major debacle in the entertainment industry.
