The Video Games Retailer GAME Files Bankruptcy In Australia.

Two months ago, Game Group PLC in UK filed in for administration (equal to bankruptcy in U.S) because of no equity value in the Group. Following the filing for administration, its subsidiary in Australia has also now filed in for administration, which directly means that GAME is in a lot of trouble.

GAME is the largest retailer of video games in Australia and has over 500 employees in 92 stores across the country. When it’s parent company filed in for administration in the UK, the managing director of GAME Australia ensured that the company back here would not suffered any impact. The company has since then been taking pre-orders for popular games that are releasing this month, such as Diablo 3.  Two months after the official announcement by U.K GAME, the company in Australia has also filed for administration.

The effect of bankruptcy is being suffered by both the employees and customers of the company alike. In a text message sent to its customers who preordered Diablo III from the store, the company wrote that due to an appointment of administrator, the company would not be receiving any stocks of Diablo III, hence will not entertain anyone who has pre-ordered the game. Furthermore, the text message also read that customers who have preordered the game will not be receiving any refunds either, despite the fact that the retailers kept advertising for preorder of the game till the last day.

According to Australian law, a company that goes under administration is not legally required by the jurisdiction to pay refunds.  Anyone who has preordered the game can register with Pricewaterhouse Coopers, which can allow them to become an unsecured creditor. The customers will likely only get paid when the debts owed to banks are cleared.

Angry customers have taken it over to Facebook and have expressed their anger in posts. As unfortunate as it sounds, those who did preorder will need to buy a new copy if they wish to play the game on time. Furthermore, if the company enters into liquidation, no one will be able to take any legal action against it without prior permission of the Supreme Court.