High street retailer Game falls into administration

Game Retail Limited, the video games retailer that once had more than 300 stores nationwide, fell into administration earlier this year.

A report from joint administrators James Saunders and Lauren Wentworth of KR8 Advisory revealed that, of the £15.8 million total debt, £3.5 million is owed to a secured creditor and around £12 million is owed to unsecured creditors.

Administrators have been appointed for a second time, with the company’s 2011 administration, The Herald exclusively revealed.

Game has fallen into administration (Image: Getty)

The administrators said: “The Game brand was originally established in 1990 and developed into the UK’s leading high street retailer of video games and consoles.

“The company started trading in 2012 following the acquisition of the UK trade and assets of the former The Game Group Plc out of administration.

“At the point of acquisition, the business operated over 300 retail stores together with two e-commerce platforms under the Game and Gamestation brand names.

“Following the completion of the acquisition, the company consolidated its operations under the single Game brand and undertook a financial and operational review, which resulted in the closure of certain loss-making stores but included plans to open new stores.”

Despite a period of renewed profitability, the company was unable to adapt to long-term changes in consumer behaviour and the broader retail landscape.

Administrators pointed to the industry’s shift from physical games to digital downloads, ongoing Brexit uncertainty, and mounting competition as key challenges.

Financial results highlight this decline.

What happens when a company goes into administration?

In the year ending July 2016, Game reported revenue of £584 million -a 10% drop on the previous year – while profit before tax fell 71% to £6.8 million.

By 2017, the company was operating at a loss before tax of £7.1 million on turnover of £493 million.

The financial outlook continued to darken.

By 2019, Game had posted a loss of £43 million on turnover of £423 million.

In a bid to stabilise the business, shareholder Frasers Group later agreed to acquire the company’s intellectual property for a cash sum “to support the ongoing business and make payment of outstanding rent due on the head office”.

However, the move was not enough to turn things around.

The administrators said: “Despite these efforts, the company’s financial position continued to deteriorate during the final quarter of 2025, which historically had been one of the busiest trading months for the business.

“There have been no major console releases since 2020, and large manufacturers have cited global chip shortages as a reason for further delays.”

UK high street shops that no longer exist

The business model, once reliant on physical game and console releases, was unable to pivot effectively to the digital-first landscape now favoured by manufacturers and consumers alike.

Game Retail Limited was ultimately placed into administration.

The administrators said after reviewing the company’s financial and operational position, “the business was no longer viable.”

The company’s secured creditor also withdrew financial support, sealing its fate.

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Administrators now estimate that there may be “sufficient realisations available to enable a distribution to be made to the secured creditor.”

However, they said: “It is currently anticipated that there will be insufficient funds available to enable a distribution to be made to unsecured creditors, other than by way of the prescribed part.”

Some concessions remain operational as part of Frasers Group’s efforts to preserve elements of the Game brand.

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