GAME: Staff will be paid

GAME has told its staff they will be ‘paid what they’ve earned,’ the retailer tells MCV.

The firm says it informed its employees via email this morning.

GAME announced it was heading into administration this morning, having failed to secure extra finance and support from its suppliers.

But the High Street chain tells MCV that it has put money aside "to ensure that everyone is paid what they’ve earned."

It’s a worrying time for the 6,000 staff at GAME following news of its administration. It now has days to find itself a third party buyer or new finance under protection of a moratorium. Should it fail, the company will close.

GAME hit trouble following a poor Christmas sales period. The business believed it would be a much stronger Q4, telling investors in September that they were confident in the software line-up – which included Modern Warfare 3, FIFA, Halo, Zelda, several 3DS titles, Skyrim and Saints Row: The Third.

Like many retailers, GAME relies on Christmas to generate revenue, and uses a banking facility to get it through the quieter Spring and Summer months.

However, following the disappointing festive period, the Group had to renegotiate a deal with its lenders (namely RBS, Barclays and HSBC). It received a significantly lower facility, which bought the firm some time. However, in order to survive until the profitable Christmas period, GAME needed better supplier terms.

It reached out to its publishers, even holding an event at BAFTA for 80 to 90 of its partners to explain what was required in order to see the retailer survive.

Although early reports suggested the meeting was a success, GAME has failed to win over some big suppliers. The firm has since missed out on major release Mass Effect 3, and has lost support from Capcom, Nintendo, Microsoft, Activision, Sega, Tecmo Koei and more. Sony was a notable exception, supplying GAME with Vita units and games such as Twisted Metal

The company isn’t without its admirers, however. OpCapita made a failed attempt to buy GAME’s debt earlier this week, while Wal-Mart, GameStop and Hilco are interested in all or parts of the business.