Market Overview

GameStop Changes Mind And Decides To Shut Down All US Stores Due To COVID-19 Pandemic After Employees Outbreak

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GameStop Changes Mind And Decides To Shut Down All US Stores Due To COVID-19 Pandemic After Employees Outbreak

GameStop Corp. (NYSE: GME) announced on Saturday that it's temporarily shutting down all its physical stores in the United States starting Sunday.

What Happened

The video game retailer will only take orders digitally through its website or mobile apps. The customers will have the option of e-commerce deliveries or curbside pickups.

"This is an unprecedented time and each day brings new information about the COVID-19 pandemic," GameStop chief executive officer George Sherman said in a statement. "Our priority has been and continues to be on the well-being of our employees, customers and business partners."

GameStop further said that all its hourly employees affected by this decision would be paid two weeks' worth of their pay irrespective of the hours they are required to work.

The Dallas-based company added that it would also reimburse benefit-eligible employees with one month of expenses.

Why It Matters

The change in GameStop's response comes days after it courted controversy by claiming to be "essential retail" that needed to remain open during the COVID-19 pandemic, even as authorities across the country imposed shelter-in-place requirements.

Price Action

GameStop's shares closed 10.26% lower at $3.76 on Friday. The shares dropped another 1.33% in the after-hours session at $3.71.

Photo Credit: Oxiq via Wikimedia.

 

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Posted-In: coronavirus GameStop Corp. video gamesNews Retail Sales Management General Best of Benzinga

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