The group is to close 18 of its 682 stores, six of which are Gamestation stores, and all its 25 concessions within the Debenhams department store chain.
The move is expected to affect up to 250 employees and follows Game Group like-for-like sales falling 15% in the 49 weeks to 9 January.
To compound the difficult annual trading, like-for-like sales over Christmas, when games retailers expect to see an uplift in sales, also decreased by 13.8% in the five weeks ending 9 January 2010 group. The Group said that the results were reflective of the current gaming market.
Game has been hit hard by mainstream retailers moving into the gaming category, with both Tesco and Sainsbury's among the biggest supermarkets to heavily push games, through discounting,
A Game spokesman stressed the closures affected "a small percentage of the UK Group" and said management "will do our utmost to seek opportunities for all affected colleagues".
He added: "We regularly review our entire store portfolio, including our concessions, to maximise the opportunities to reach customers, while also ensuring that the business is running as effectively as possible.
"The majority of the identified sites are located close to another one of our stores, and we will help each customer affected by a closure to transfer to their nearest store, as well as our online offerings."
Rival online retailer The Hut Group reported a 188% rise in the number of orders in the six weeks to Christmas 2009, compared with the previous year.
The company, which acquired the brand Zavvi in 2008 as an online-only brand, has since launched a weekly sale day called Mega Monday. On the promotional day, Zavvi offers up to 80% off the RRP of a selection of bestselling DVDs, CDs and books.
.jpg)
.jpg)