230 jobs lost as Game shuts 27 Irish stores

Video game retailer closes all branches in Republic

ALL 14 Game stores in the Republic are to shut with the loss of 121 jobs.

The shock announcement yesterday was part of a raft of closures and job losses at the video games specialists.

A further 110 jobs will soon be lost in the North, where 13 stores will close. Just five will remain open.

The chain has suffered from dire trading in recent months, while some suppliers have refused to stock the retailer as its worsening finances came under increased scrutiny.

The retailer has eight stores in Dublin, two in Cork, and one each in Athlone, Galway, Limerick and Monaghan.

It is understood that all Irish staff are to be made redundant but they will only receive the basic statutory redundancy payment, and won’t be able to avail of a company-supported scheme.

Staff here said they were now considering holding a sit-in of some stores in order to get a better redundancy package.

They argue it is unfair given that the business is still viable and has more than 1,000 stores worldwide. Will Donoghue, manager of the Game branch in Blanchardstown Shopping Centre in Dublin said the staff were considering staging a sitin in a bid to get better packages from the company.

He said: ‘We want what we are entitled to, basically, and we may take action. I feel I deserve better after 18 years.’

The gloomy news comes just one week after the company’s shares were suspended on the London Stock Exchange.

It had earlier admitted that there was no equity value left in the group – which employs more than 10,000 people at 1,270 stores in nine European countries and in Australia.

Overall, 277 of these stores across Ireland and the UK will be closed, with more than 2,100 job cuts.

Pricewaterhouse Coopers blamed the operational requirements of the business with the current difficulties in the retail market.

Mike Jervis, the joint administrator and a partner at PWC, said the job losses were regrettable, but that its priority was to try to find a buyer to take over the business. Mr Jervis said: ‘Our priority is to continue trading the business as normal while we continue to pursue a sale.

‘The recent job losses are regrettable but will place the company in a stronger position while we explore opportunities to conclude a sale. My team and I will be doing all we can to help the affected employees at this difficult time.’

The troubled company has been struggling to compete recently and suffered huge losses to its profits and cashflow.

‘I deserve better

after 18 years’

It was reported to be trying to raise €215million this week after several suppliers refused to provide it with new products. It has debts of €100million.

Around 333 stores across the UK will continue to employ 2,814 people, as usual.

PWC has said it will also impose a temporary ban on all gift vouchers at the stores. The group has already signalled that losses for the year to the end of January are likely to be around £18million (€21.5million).

Game suffered a dismal Christmas and was later forced to ask suppliers for more generous trading terms.

However, many stopped supplying it with new releases, such as Mass Effect 3 and Street Fighter X Tekken, leaving fans disappointed and adding to the group’s trading woes.

Based in the UK, Game also has stores trading under the Game and Gamestation brands in France, Spain, Portugal, Sweden, Norway, Denmark, the Czech Republic and Australia.

Industry analysts put its difficulties down to the fact that purchases of games, hand-held devices and electronic consoles are increasingly being made online.

Meanwhile, a further 80 jobs were also lost with the closure of Munster Glass in Cork city yesterday.

Last Friday staff were told that the company was looking for a new buyer, however none was found.

It is understood the workers will receive statutory redundancy packages.