GameStop Announces Strategic Update Regarding Its European Operations
September 15 2014 - 9:52AM
Business Wire
Company Intends to Exit Spanish Market
through the Partial Sale of Store Locations
GameStop (NYSE: GME), a family of specialty retail brands that
makes consumers favorite technologies affordable and simple,
announced today its intent to exit the Spanish market via the sale
of certain retail locations to specialist video games retailer,
GAME Digital Plc (“GAME”) in combination with closures of the
remaining locations. Under the terms of this proposed agreement,
GameStop will transfer ownership of a portfolio of GameStop stores
located in Spain with the remaining retail sites winding down in
2014. GAME already has a strong consumer presence in the country in
addition to its retail operations in the UK. In the coming months,
GameStop will work closely with GAME to ensure a smooth transition
and continued support for all of GameStop’s customers in Spain. “We
are focused on ensuring commitments to our customers, employees,
vendors and other stakeholders are met during this process,” stated
Mike Mauler, executive vice president, GameStop International.
The strategic decision to exit the Spanish market was made after
a careful review of the market’s financial performance and future
opportunities, which ultimately indicated the Company would be
better served by curtailing its operations in Spain and focusing
its resources in other countries where GameStop has significant
market share. GameStop expects to maintain and expand its presence
in the other European countries in which it currently operates.
“Our strategic decision to exit the Spanish market was not taken
lightly,” said Michael Mauler. “We are constantly evaluating our
portfolio and regional focus to deliver maximum effectiveness and
profitability. As it stands today, we believe other international
markets better match our operating criteria and as such have
decided to redeploy our resources in other areas with the greatest
potential for return. With its existing presence in Spain, GAME is
the logical company to acquire our stores and this move will
maximize job retention and ultimately ensure that the Spanish video
game consumer will still have access to the best hardware and
software they demand.”
The proposed deal will require Spanish Competition Authority
approval, which is expected to be completed in October. Financial
terms of the deal were not disclosed.
About GameStop Corp.
GameStop Corp. (NYSE: GME), a Fortune 500 and S&P 500
company headquartered in Grapevine, Texas, is a global,
multichannel video game, consumer electronics and wireless services
retailer. GameStop operates more than 6,600 stores across 15
countries. The company’s consumer product network also includes
www.gamestop.com; www.Kongregate.com, a leading browser-based game
site; Game Informer® magazine, the world’s leading print and
digital video game publication; and www.buymytronics.com, an online
consumer electronics trade-in platform. In addition, our Technology
Brands segment includes our Simply Mac, Spring Mobile and Cricket
stores. Simply Mac, www.simplymac.com, operates 33 stores, selling
the full line of Apple products, including laptops, tablets,
smartphones and offering Apple certified warranty and repair
services. Spring Mobile, http://springmobile.com, sells post-paid
AT&T services and wireless products through its 238 AT&T
branded stores. Cricket Wireless, www.cricketwireless.com, is a new
AT&T brand offering pre-paid wireless services, devices and
related accessories. We operate 48 Cricket stores in select markets
throughout the United States.
General information about GameStop Corp. can be obtained at the
company's corporate website. Follow GameStop on Twitter @
www.twitter.com/GameStop and find GameStop on Facebook @
www.facebook.com/GameStop.
Safe Harbor
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements may include, but are not limited to, the
outlook for the third quarter and fiscal 2014, future financial and
operating results, projected store openings, the company's plans,
objectives, expectations and intentions, and other statements that
are not historical facts. Such statements are based upon the
current beliefs and expectations of GameStop's management and
are subject to significant risks and uncertainties. Actual results
may differ from those set forth in the forward-looking
statements. GameStop undertakes no obligation to publicly
update or revise any forward-looking statements. The following
factors, among others, could cause actual results to differ from
those set forth in the forward-looking statements: the inability to
obtain sufficient quantities of product to meet consumer demand,
including console hardware and accessories; the timing of release
of video game titles for current generation consoles; the risks
associated with international operations, wireless industry
operations and the integration of acquisitions; the impact of
increased competition and changing technology in the video game
industry, including browser and mobile games and alternative
methods of distribution; and economic, regulatory and other events,
including litigation, that could reduce or impact consumer demand
or affect the company’s business. Additional factors that could
cause GameStop's results to differ materially from those
described in the forward-looking statements can be found
in GameStop's Annual Report on Form 10-K for the fiscal
year ended Feb. 1, 2014 filed with the SEC and
available at the SEC's Internet site at
http://www.sec.gov or http://investor.GameStop.com.
GameStop Corp.Matt Hodges817-424-2126matthodges@gamestop.com
GameStop (NYSE:GME)
Historical Stock Chart
From Jun 2024 to Jul 2024
GameStop (NYSE:GME)
Historical Stock Chart
From Jul 2023 to Jul 2024