UK retailer GAME has been facing tough times of late, with redundancies, store closures, and executives being jettisoned in recent months due to tough economic times. It seems the Australian arm of the business hasn't been spared, with news that much of the local chain's executive staff has been let go; plans to cull stores are currently underway.
UK trade magazine MCV first reported the Australian cuts last week, stating that between 10 and 20 jobs were lost. Amongst the cuts were GAME AU directors Rob Lukic and Tony Pagan.
A source close to GAME who did not wish to be identified has confirmed the cuts to GameSpot AU, saying that an internal e-mail sent two weeks ago detailed the various changes. Lukic and Pagan have been let go, as have other members of the management team and some ancillary staff at GAME AU's Castle Hill headquarters. The company will now be run out of the UK by group planning and strategies developer Mark Axon, with Paul Yardles acting as the interim director until Axon comes out to Australia.
The source also said that the GAME group was planning to close up to 20 non-profitable stores in Australia. This move would not happen immediately but would occur when those individual store's leases run out.
GAME first entered the Australian market in September of 2006, buying out the Gameswizards chain for A$3.8 million from then Gameswizards CEO Robert Lukic. Back in 2006, Gameswizards only had 20 stores, but an aggressive expansion saw the number of GAME stores rise to almost 110 locations.
GameSpot AU has not received comment from GAME AU as of press time.