UK retailer GAME forced to pay £3M in back rent fees
British video games retailer GAME has lost a legal case filed by its landlords, and has been ordered to pay £3 million in rent fees accrued during its administration (bankruptcy equivalent) period in 2012, Retail Week reports.
GAME's landlords banded together last year in an attempt to recoup the retailer's missed rent payments, and the ruling sets a significant legal precedent. Under British law, administration often allows companies to avoid paying back rent fees incurred during insolvency.
"GAME's exposure following this decision is limited to a one-off liability of £3 million which has already been accounted for," a company spokesperson said in a follow-up statement, via MCV. "The real ramification of this decision is, however, that it will have a significant financial impact on all landlords, tenants and insolvency practitioners involved in current and future business insolvencies in this country."
GAME's administration in 2012 resulted in widespread employee job losses and the closure of its Australian division. A private investment firm purchased GAME afterward, ending its administration and saving 3,200 jobs across the retail sector.
The decision follows GAME's recent retail expansion, during which the company unveiled a new store chain focused exclusively on used game trade-ins. GAME plans to rejoin the stock market this year.
[Image: GAME]
