After recently filing for administration earlier this month, the administrators for GAME Australia has announced their plans to close sixty stores and cut 281 jobs across the board, 17 of which will be at the firm’s head office. It has not yet been detailed which stores will be closing in the nation.
Before this announcement, GAME Australia was working with approximately 500 staff members. The administrators of GAME Australia, PricewaterhouseCoopers (PwC), have noted that:
“After reviewing the financial performance and profitability of the individual stores, and we regard to current discussions with interested parties, it is not possible to continue to trade these stores.”
Kate Warwick of PwC went on to say:
“This is a difficult time for employees and closing the stores was not a decision we made easily… However it is not financially viable to continue to operate at this level at this time.”
The retailer currently has no career positions available.
Analysis: In what will be the first of many rounds of downsizing, GAME Australia is attempting to recover their losses and reduce expenditures. This clearly meant that, somewhere down the line, there were going to be layoffs, although I didn’t predict such a high number on the first wave. I’ll be keeping an eye out over the next month to see if any stores in my region have been closed, although most in my local area do see a consistent amount of customers for the most part.
Notably, on the GAME Australia web site, many of the newer titles have had prices cut in an attempt to simply move product, with Mass Effect 3 and Resident Evil: Operation Raccoon City now on sale at $78, down from the regular retail price of $109.99. Although many of the newer titles simply aren’t stocked by the retailer.
My condolences go out to those who have lost their jobs and I hope that they can find a new occupation soon.