EB Games Proposes Closure of All New Zealand Stores Amid Financial Struggles

EB Games has proposed the closure of all its stores in New Zealand, a decision that would lead to the disestablishment of all roles within the company in the country. In a communication to employees, managing director Shane Stockwell emphasized that the proposal is not final and that a full consultation process will take place before any decisions are made.

The proposal includes shutting down the remaining 38 EB Games stores in New Zealand, along with the New Zealand Distribution Centre. If implemented, this move would significantly impact the workforce and local operations. Employees have been encouraged to provide feedback on the proposal by January 12, 2024.

EB Games, which operates as a retailer of video games and pop culture merchandise, has been owned by GameStop since 2005. Currently, the company has a total of 336 stores in Australia. The financial viability of the New Zealand operations has come under scrutiny as the company has reported ongoing losses.

According to Stockwell, the New Zealand business has become commercially unviable, suffering a multi-million dollar loss during the 2024 fiscal year. The retail environment has remained sluggish, and there is limited confidence regarding future performance improvements. In a previous move, the company proposed eliminating all administrative staff in New Zealand at the start of last year, indicating a trend of financial distress.

In his communication, Stockwell expressed regret over the situation, stating, “We are saddened to be in this position having already made significant and repeated efforts to turn the business around.” Despite the proposed closures, he mentioned that there might be opportunities for New Zealand employees to relocate to positions within the Australian operations of EB Games.

As the company navigates this challenging period, the implications of these potential closures extend beyond just the workforce, affecting the broader retail landscape in New Zealand. The outcome of the consultation process will determine the future of EB Games in the country and the jobs of those currently employed.