Report: GameStop-owned EB Games to close all its New Zealand stores
GameStop-owned EB Games is reportedly closing all of its New Zealand stores on January 31, with the distribution center closing on February 28 instead.
This is according to a report by RNZ. The outlet claims to have reviewed an internal memo sent to employees, the second this month, penned by EB Games Australia & New Zealand managing director Shane Stockwell.
According to RNZ, Stockwell said the company had "numerous" third parties approach EB Games after it was reported that it was considering shutting down operations earlier in January. Yet, "these parties did not present any proposal or solutions about how to keep the New Zealand business sustainable," reads the quote in the article.
On January 8, RNZ first reported that Stockwell, based on an internal memo reviewed by the outlet, was reportedly proposing to close all of its remaining stores in New Zealand, which made for a total of 38.
In the proposal letter, Stockwell reportedly said that it was "not final," and no decision would be made until the company had "completed a full consultation process in good faith with affected team members." It's unclear if the consultation process was realized, and how.
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, but it remains unclear whether this came into effect.
Meanwhile, 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.
