Video games retailer, GAME Australia, has gone into voluntary administration leaving many customers with game pre-orders, gift cards, and in-store credits in the lurch.
On May 13, PriceWaterhouse Cooper (PwC) was appointed as voluntary administrator for the retailer.
GAME has 92 stores operating across Australia with about 500 staff under its wing.
In March, GAME’s parent company in the UK also went into administration only to be saved after being purchased by OpCapita, a London-based private investment firm.
The reason behind GAME Australia’s situation remains unclear.
GAME Australia CEO, Paul Yardley, had previously told ARN the retailer operated separately from GAME in the UK and was not affected by it’s parent company’s financial woes.
"While we are still investigating the causes behind the Australian administration; the impact of the administration of its parent, an ambitious national roll-out combined with the current soft retail environment appear to be key factors," PcW partner, Kate Warwick, said in a statement.
While PcW will carry on and run Game retail shops close to “business as usual”, it is still working through how to sort out the pre-ordered games situation.
A number of customers have already placed pre-orders on highly-anticipated games such as Diablo III, which was released today.
PcW has already clarified it is unable to refund customer deposits for pre-ordered items.
According to Kotaku, PcW has said it is unable to order additional copies of Diablo III to meet all pre-order demands due to lack of funds.
For customers that have gift cards, gift vouchers or in-store credits, they are still valid but with conditions.
“[T]hese can only be used for 25 per cent of the total purchase price [for products in store or online],” according to PcW.
Again, the administrators are unable to refund gift cards, gift vouchers or in-store credit. Customers unhappy with this scheme can contact PcW after completing a Proof of Debt form.
Yardley could not be reached for comment.