It seems that gaming retailer GameStop has thrown in the towel regarding looking to sell. The chain made their announcement today regarding the goals for the future of the company and what their next step is.
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According to the retailer, they have halted sales efforts following a “lack of available financing on terms that would be commercially acceptable to a prospective acquiror.” In June 2018, the company started their pursuit of selling options. GameStop tells us, “As part of the Board’s review process, as previously announced, the company sold its Spring Mobile business. This transaction was completed on January 16, 2019 and generated approximately $735 million in immediate cash proceeds. The Board continues to evaluate the optimal use of these proceeds, which could include reducing the company’s outstanding debt, funding share repurchases, reinvesting in core video game and collectibles businesses to drive growth, or a combination of these options.”
As far as what’s next for the company, the retailer mentioned that they are looking to fulfill a “highly qualified, permanent CEO” to help out with the various options available to the chain. Since the third party sale didn’t go through, the company is forced to rethink their entire strategy, which does seem to leave its future unclear at this time. The Grapevine, Texas center of operations just underwent a recent hiring spree and given its link to both ThinkGeek and Game Informer, the decision to not sell might not mean what many will immediately assume.
At this point in time, whatever happens next is speculation though we do have confirmation of a higher-up restructuring.
What do you think of GameStop’s decision to halt the sale of their company? Join in on the conversation in the comment section below, or hit me up over on Twitter @DirtyEffinHippy!
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