Grainger Games collapsed owing more than £3m to unsecured creditors, documents filed at Companies House reveal.
The video games retailer started life in a Grainger Market stall but grew to become a nationwide gaming favourite through a network of 67 stores.
In March, however, the firm fell into financial difficulties and 21 stores were emailed and told not to open. The following week the remaining 46 stores were also closed, including the Newcastle store which announced the firm’s demise with a sign saying: “Sorry to say we are now closed. Thanks for 21 years of custom. Game OVER.”
The firm’s collapse led to the loss of around 400 jobs.
Now administrators Steven Ross and Allan Kelly at RSM accountants in Newcastle have been appointed and a statement of affairs has been published revealing the company’s financial position.
The paperwork shows the firm owes £3,708,540 to a list of around 150 unsecured creditors including many North East firms, property and utility consultancies, councils and recycling firms to games and collectables distributors.
A list of the company’s assets includes stock worth £2.6m, motor vehicles worth £67,000, cash in the bank of £429,910, fixtures and fittings worth £993,211 and trade receivables and prepayments of £253,225.
It is likely that a substantial number of unsecured creditors – including HMRC tax and national insurance and VAT bills totalling £704,632 – could be left out of pocket.
Grainger Games collapse came after it struggled to survive in the current video game market, which has seen an increase in demand for downloadable games.
In an bid to adapt, the high street branches had begun selling pop culture, movie and video game merchandise and collectables.
But the firm was dealt a massive blow when managing director Stephen Bowyer revealed the company’s creditors had decided to slash its credit facilities.
During the financial year ending March 2017 Grainger Games Holdings Limited made an operating loss of £1.3m after its turnover dipped to £48.7m.
In 2016 the firm had reported an operating loss of £223,000 and revenues of £51.1m.
Source : Chroniclelive