Game to maintain Irish operation

HOME entertainment retailer Game plans to retain the chain’s Irish operation despite its rapid decline in sales in Ireland and Britain.

The chain, which has 1,300 stores worldwide and employs 180 people in Ireland, announced yesterday that it would not be able to meet its banking covenant (a promise made to creditors to secure a loan) when this is tested at the end of February.

The warning comes after the group recorded a 13% decline in online and store operations. The chain’s Christmas sales of video games were disappointing.

Game communications director Simon Soffe said that the weak games market has greatly impacted on the company’s performance, but they remain hopeful for a return to growth.

“We have a very firm plan underway that will ensure that the company grows again,” said Mr Soffe. “We expect to be back on track by 2013 and are currently working hard on our recovery plan to get profits back up.”

Game will downsize from 610 to 559 stores across Britain and Ireland by 2013. Only one store was closed in the last 12 months in Ireland.

“Right now we don’t know how many stores will be closed in Ireland in the coming two years.” said Mr Soffe. “There will be some reduction but it will be miniscule. We certainly will not be withdrawing operations.