GAME CEO steps aside as the company officially enters administration

by Ben Abbott at 7:10 pm on Monday, 26 March 2012

 
Following on from failed talks with lenders and third parties, GAME have officially appointed PwC LLP as their administrator earlier today.
“This decision is taken after careful consideration and ceaseless interrogation of every possible alternative,” the company said this morning. “The Board would like to thank the teams of GAME and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism”.

This comes after the news that GAME CEO Ian Shepherd has stepped down from his post following the appointment of PwC, gleaned from an internal memo acquired by MCV.

“I've said a number of times that the administrator, once appointed, takes charge of the business,” he wrote. “Having two people try to do that is both confusing and a waste of money. With that in mind, I’ve agreed with Mike [Jervis, of PwC] that I will step down as CEO and the business immediately – this is my final email to you all.”

“As I've said before, the business is worth more trading than not. It's going to be a difficult week for everyone, but the best thing you can all do is support Mike and his team, and do your best to help create the most positive outcome you can.”

In another message reportedly sent on Friday (also published by MCV), Shepherd voiced concern at how the situation was being reported in the media, arguing that “the reality, I’m afraid, is that a lot of what you read online is speculation about things that might happen, rather than facts about what actually is happening”.

In a bid to clarify GAME’s situation, he went on to outline how an administrator’s “priority will be to trade rather than liquidate”, and that the company had made steps to ensure its staff were paid for the work they had done this month. In response to the ill-feeling deriving from the difficulties the retailer was facing when “supposedly weaker retailers have limped along”, he pressed that “I have fought, and all of the management team here have fought with every ounce of energy to avoid arriving at this point. That we haven’t succeeded makes me angry and sad in equal measure. As your CEO, this is my responsibility and I don’t shirk from that”.
For the full message, click here.

Once again, our thoughts go out to those affected - we wish you all the best.

Source: MCV

- Ben Abbott

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