GameStop’s tough year continues as the company announced plans to close between 180 and 200 “underperforming stores” by the end of the fiscal year.
In a recent earnings call, GameStop CFO Jim Bell reported further losses for the struggling video game retailer. Sales were down 14.3% year-over-year and the company posted a net loss of $415 million in its Q2 earnings report.
As part of GameStop’s turnaround plan, the company will close up to 200 stores globally. Bell noted that 95% of the company’s 5700 stores worldwide are profitable, and that underperformance is not the sole metric the company is looking at when determining store closures.
Store closures would be the latest sign of trouble at the video game retailer. After failing to find a buyer earlier this year, GameStop recently laid off over 120 corporate employees, including staff members from its Game Informer publication. GameStop confirmed the layoffs to IGN last month. The company also laid off over 50 regional district field leaders and consolidated its regional offices.
Source: IGN Video Games All