EB Games is proposing to close its New Zealand stores. Photo: Supplied
EB Games is proposing to shut down its New Zealand business and close all its stores, according to a letter sent to employees.
In the note to employees seen by RNZ, managing director Shane Stockwell said: "This proposal is not final, and no decision will be made until we have completed a full consultation process in good faith with affected team members."
"This proposal includes the closure of all remaining EB Games New Zealand stores and the New Zealand Distribution Centre.
"If the proposal were to proceed, it would mean that all roles within EB Games New Zealand would be disestablished."
EB Games is an Australian-based video game and pop culture merchandise retailer, owned by GameStop since 2005.
There are now 38 stores in New Zealand, according to GameStop's latest annual report, and 336 in Australia.
It's uncertain how many jobs would be lost if the proposal goes through and EB Games closes all its New Zealand stores.
Many New Zealanders were sharing their memories of the EB Games chain on social media on Tuesday night.
"End of an era, I remember doing lots of trades back in my youth," one commented on RNZ's Facebook page, while another said they were "sad as, remember midnight releases, going to get games at 12am."
"I'm not surprised, but man what a loss," one person wrote on Reddit, while another said, "the death of physical media is nigh."
"Sad news we've been shopping at EB Games for over 20 years," one person wrote. "Feel sorry for the staff that we have gotten to know in that time."
The chain has been facing stress for some time, including closures of stores in both Australia and New Zealand. It is currently advertising a "30 percent off everything" sale on its website.
Stockwell described the New Zealand business as no longer commercially viable, with a "multi-million dollar loss during the 2024 fiscal year".
He said the retail market continues to be sluggish and the company was not confident its performance would improve.
"We are saddened to be in this position having already made significant and repeated efforts to turn the business around," Stockwell wrote.
He said the company had been trying for the past three years to transform stores and boost profits, as well as trying to sell the New Zealand business. At the beginning of last year, the company eliminated all its New Zealand administrative staff, Stockwell noted.
"While these steps have been significant, they have not delivered the commercial outcomes that we had hoped for."
The company said that there may be opportunities for New Zealand employees to relocate and take up work in the Australian EB Games operations.
Employees have been asked to submit feedback on the closure proposal by 12 January.
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