UK video game retailer GAME has furloughed its staff on full pay until the end of April due to the coronavirus outbreak but cannot say for sure if they will have jobs beyond that point.
GAME was forced to close every one of its 247 stores on March 24th when the UK government issued a call to shut all retail shops selling non-essential items. Frasers Group – the name of GAME owner Mike Ashley's retail business – issued an email on March 31st which has been seen by Eurogamer, and notifies furloughed staff that regular pay will continue from 26th March up to 30th April 2020. The level of pay is determined by average monthly income rather than contracted hours.
However, the email also states that pay and jobs cannot be guaranteed after the end of April. After that point, staff who still have jobs within the group will be paid 80 percent of their wage up to a cap of £2500 per month, as per the government's Coronavirus Job Retention Scheme, which Fraser Group is taking advantage of.
GAME's warehouse in Basingstoke continues to operate to fulfil online orders.
Here are some edited highlights from the email, as posted by Eurogamer:
We are working in unprecedented times. Every day our lives and economy see huge changes. COVID-19 touches every aspect of what we do. All of us are affected, as individuals, businesses and society at large. Our economy is fighting for survival. Retail remains one of the hardest hit sectors. We will continue to do all that we can to ensure that our business remains as strong as possible for the benefit of all of us.
We must make difficult decisions to ensure that as we move out of the current situation our business is in the best place possible. The work that was once there has fallen away; our business, as with so many others, is smaller. We must respond to these circumstances, including the reduction in work.
As you know, in light of the UK Government's latest guidance and most recent stricter curbs on permitted activity, we had no choice but to close all of our stores with immediate effect as at close of trading 23rd March 2020. Because our stores are closed and because your work relates to the trading of our stores, since this date, or shortly after, you have been unable to and have not been working - this is because there has been no work for you.
Across the business, there are many humbling stories of what our people have done to support us, their colleagues and their communities, national and local - for which, thank you.
However, the email adds that "...we and you should plan for the next few months getting harder for our business," and that "...we cannot rule out the possibility of taking such drastic steps; we are in difficult circumstances."
GAME has endured a turbulent history over the past few years, and it will be interesting to see what shape the UK's only specialist video game retailer takes once the coronavirus outbreak is over.
[source eurogamer.net]
Comments 24
This is sad news. Hopefully they have jobs to come back to after this. Good luck to anyone affected.
It is very sad to see so many people losing their jobs so fast. I hope ALL of them will find a new job or get their job back after the pandemic.
I thought you couldn't be put onto furlough unless the company guarantees you had a job at the end of it?
Stay strong for everyone and anyone with job issues at the moment take care everyone x x x
@FragRed I think thats just for the government aid. But even then you cant guarantee anything.
Hopefully they pull through as it will be a shame for their staff many of whom are active members of the gaming community.
Is the U.K. providing any sort of support for a business like this? The U.S. is providing partially/fully forgivable loans only covering essentials ( i.e. payroll) for an 8 week period to small businesses ( less than 500 employees) which I will be taking advantage ( 2 employees) of so my business doesn't go under.
@Cyberbotv2 I believe they have offered grants and put a freeze on business rates paid on premises. At least I think so, at lot has happened in such a short time it's hard to remember now.
Mike Ashley is a monumental idiot though. And that's the family friendly way of putting it.
@elpardo1984 Right that’s where I got confused. Still this completely sucks that so many could likely have no jobs by the time the pandemic ends, in the case of Game even sooner, but unfortunately this is going to be far too normal.
@Baker1000 I just looked up this fellow Ashley, and he's filthy rich. As a billionaire, I guess he doesn't have enough money to directly aid what he owns. What a disgrace.
@Cyberbotv2
The Government is paying 80% of Furloughed Employees salaries up to £2500 a month (plus National Insurance and some Pension contributions) until at least end of May. That’s what GAKE are using here. Their owner is a monumental (insert harsh swear word here) but to be fair, this is the kind of thing the scheme was designed for.
@sandman89 It's "up to" and don't be a jerk.
That’s actually not a bad deal. It’s basically a months severance and the possibility of a job waiting for you. If it were me I would definitely start looking for a job during that month because it’s unlikely they will be open at the end of the month. These are tough times indeed.
I have just gone onto furlough for 2 months. Better than nothing but really tough times.
Having had the unfortunate pleasure of meeting Mike Ashley when I worked for Sports Direct his overall attitude towards his employees is poor anyway and it took a while for his practices to be exposed by the media. Despite that he continues to buy up more and more retailers and put his poor ethics in place. I wouldn't be surprised if he purposely uses it as an opportunity to cut costs and man power in all game stores while expecting them to make more money in future.
I don't expect GAME, or an specialist games retailer, to survive this
Sad news, though the writing's been on the wall for retail game shops for a while now. I imagine most GameStop stores won't reopen after this either.
Completely unrelated, but I gotta say, I have heard the word "unprecedented" more these past three weeks than I probably have in my entire life. Ugh...
@SwitchVogel - It curious even, cause we championed their downfall for a while (I do think they'll be back at 20-50% capacity), this downright ruins most potential locals to cannibalize the abandoned business.
@Paraka I expect there will always be local game stores, but I don't think the market is there to sustain specialized major retailers like this anymore. Their primary purpose is to sell games, and nowadays games can be bought online in a much cheaper and easier fashion, even physical. I view it more as a matter of the 'need' that these stores are supposed to fulfill is both rapidly shrinking and better satisfied by through other channels. Thus, we see the relevance of these companies declining.
You’re welcome with the picture
@SwitchVogel I think we could hit a threshold fairly soon where games disappear from retail all together. At some point, if so many people are buying via download, stores including big box retailers will say, "It's not worth it." And then manufacturers will (probably happily) declare that there's no longer enough demand to continue making physical games. And as the manufacturers drop out, that kills the last of the retail holdouts. Maybe a niche market of collectors editions will still exist, but you'd probably have to order it direct from the publisher.
@Dringo I don't either. I sort of suspect they know it too and that had to do with Gamestop/EB Games refusal to close their doors initially.
We were heading toward them fading out anyway, albeit at much slower pace, but I'm thinking this will accelerate things quite a bit.
@Cotillion Both we’re transitioning themselves to a new business model. GAME much further along in that regard. You can’t download a controller. There is a role for physical stores. The slow rise of digital was a real threat, and esports and Belong was their answer to counter it.
But transitions take time and careful management and can be impossible to get right. With Sports Direct money, they were saved twice and given the chance to develop this.
But now... now their chance might be gone
@Cyberbotv2 Yeah, he owns a lot of high street chains and even a football club. The football fans have been calling for him to sell up for a long long time because he doesn't spend the money required to be a successful team. He's fairly widely disliked tbh.
This is sad news, I feel bad for the staff and for everyone involved. At least they are still getting paid unlike staff of a well known pub chain. Lets hope Game find a way of surviving....
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