Report: GameStop-owned EB Games proposes closing all its New Zealand stores
EB Games, an international video game retailer that was acquired by GameStop in 2005, is reportedly proposing to close all of its remaining stores in New Zealand.
Via RNZ, EB Games managing director Shane Stockwell reportedly sent a letter to employees, which was reviewed by the news outlet, stating the proposal.
In the letter, Stockwell says that the proposal is "not final," and no decision will be made "until we have completed a full consultation process in good faith with affected team members."
Said proposal includes the closure of all remaining EB Games New Zealand stores and the New Zealand distribution center. According to GameStop's latest annual report, the proposal would impact 38 stores.
Stockwell reportedly described the New Zealand business as no longer commercially viable, with a "multi-million dollar loss during the 2024 fiscal year." According to RNZ, the managing director told employees the company had been trying for the past three years to transform stores and boost profits, as well as trying to sell the New Zealand business. "At the beginning of last year, the company eliminated all its New Zealand administrative staff, Stockwell noted, as reported by RNZ.
The company reportedly said that there may be opportunities for New Zealand employees to relocate and take up work in the Australian EB Games operations. Meanwhile, workers have been asked to submit feedback on the closure proposal by January 12.
In 2022, GameStop laid off its CFO and an unknown number of additional employees in pursuit of "sustainable profitability." The news came five months after the retailer launched an NFT marketplace, alongside a $100 million crypto fund.
