News: Rotherham GAME stores saved

Rotherham stores operated by struggling video game retailer, Game Group, are set to be given an extra life after they were bought out of administration.

PwC, administrator to The Game Group plc has announced a deal with OpCapita LLP, the private investment firm specialising in operational turnarounds in the retail, consumer and leisure sectors, on the sale of GAME's UK assets.

Under the terms of the transaction, Baker Acquisitions, an entity advised by OpCapita, will acquire the UK business out of administration and will provide it with the capital it needs to trade on a normalised basis.

Financial terms of the transaction were not disclosed by the group that also owns electrical retailer, Comet.

Baker will acquire all 333 UK stores that have remained open during the period of administration.

This includes the GAME store at Parkgate Shopping and the Gamestation store in Rotherham town centre and the statement added that there are no plans for any further store closures.

GAME had operated 641 stores before entering administration.

The agreement means that the jobs of nearly 3,200 GAME employees, who will transfer to Baker, have been safeguarded. Baker Acquisitions will also seek to re-employ a small number of staff who previously worked at GAME's head office but who received redundancy notices last week.

Henry Jackson, managing partner of OpCapita said: "We are pleased to have reached agreement with the Administrator. We strongly believe there is a place on the high street for a video gaming specialist and GAME is the leading brand in a £2.8 billion market in the UK.

"We have assembled a strong team of experienced industry operators to implement the programme of operational change that is needed. There is a huge amount to do but we look forward to the challenge of restoring GAME's fortunes in partnership with its employees and suppliers."

Mike Jervis, administrator to The GAME Group plc and partner at PwC,added: "We are delighted to be able to secure this business sale and provide some much needed stability for customers, suppliers and employees alike in these uncertain times. The support of these stakeholders has been crucial over the last week and I would like to thank them for their support throughout this difficult period.

"This means that the GAME brand will not be another one of the retail names disappearing from the high street in the current difficult climate."

GAME website

Images: gamegroup.plc.uk