GameStation on Sutton High Street closed (From Croydon Guardian)

GameStation on Sutton High Street closed

3:36pm Monday 26th March 2012 in News

Gamestation has reportedly shut its doors in Sutton High Street following the company entering administration.

Its sister company, Game, also on the High Street, received a phone call at about 2.30pm confirming the store was to stay open.

It was announced this morning that the Game Group, which owns the stores, had gone into administration.

The group, with a turnover of £1,625m in the year to January 31, currently has 609 stores throughout the UK and Ireland.

Its head office is in Basingstoke with operations in the UK and Ireland, Spain, Portugal, France, Czech Republic and Australia.

It employs 385 people based in the group’s head office in Basingstoke and 5,136 store employees across the UK and Ireland - including about 33 in Croydon.

Mike Jervis, joint administrator and partner at PwC, said: "The group has faced serious cashflow and profit issues over the recent past.

"It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.

"Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one, the UK.

"As a result we are hopeful that a going concern sale of the business is achievable."