According to a report in the UK newspaper The Daily Telegraph video game retailer GAME has announced that its Australian division was going into "voluntary administration." The company has chosen Pricewaterhouse Coopers to deal with its current financial complications, though the accounting firm said that the 92 stores in the country would continue to run while things were sorted out. The company employs about 500 people in Australia.
The news has also complicated one of the biggest releases for this year - Diablo III. According to several published reports, customers who pre-ordered the game have been informed via email that their pre-orders would not be on time and that they would not be receiving a refund.
"Due to the appointment of an administrator to our business this morning, it is with regret that I inform you all that our stores will not be receiving any stock of diablo 3 (sic)," the message read.
"Because of this, we regrettably will be unable to fulfill any pre-orders. Also, we will be unable to refund any deposits paid towards a pre-order of diablo 3. If you need any more info, please email email@example.com."
While a company that is in administration may not legally be required to give refunds, it's still really bad for their reputation if they survive the process.
As you can imagine, customers who pre-ordered Diablo III are absolutely livid with GAME, but there's not a lot they can do about it either.
Source: The Daily Telegraph