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GameStop plans up to 200 store closures, expects many more on the way

Jason

By Jason
in The Spawn Point

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Commissar SFLUFAN

Commissar SFLUFAN

Posted
Posted
12 minutes ago, AbsolutSurgen said:

That is an understatement.  I am surprised they still feel comfortable calling themselves a "going concern".

They can get away without a "going concern" disclosure in an unaudited 10Q.  You can be damned sure that their IPA had better have that disclosure in the audited annual report/10K.

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AbsolutSurgen

AbsolutSurgen

Posted
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Just now, SFLUFAN said:

They can get away without a "going concern" disclosure in an unaudited 10Q.  You can be damned sure that their IPA had better have that disclosure in the audited annual report/10K.

In their 10-Q they explicitly said:

Quote

As of August 3, 2019, we had total cash and liquidity of $707.0 million, including cash on hand of $424.0 million and an additional $283.0 million of available borrowing capacity under our revolving credit facility. Based on our current operating plans, we believe that available cash balances, cash generated from our operating activities and funds available under our asset-based revolving credit facility together will provide sufficient liquidity to fund our operations, transformation initiatives and corporate capital allocation programs, including any share or debt repurchases that we may undertake, for at least the next 12 months.

I haven't done any analysis on their cashflow (other than briefly glancing at this quarter's cash flow) -- but I was surprised that the CFO/CEO felt comfortable saying this (on a personal liability basis).

 

Anyone who has trade-in credit with them probably doesn't want to leave it there for the PS5/Scarlett launch.

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Commissar SFLUFAN

Commissar SFLUFAN

Posted
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9 minutes ago, AbsolutSurgen said:

In their 10-Q they explicitly said:

I haven't done any analysis on their cashflow (other than briefly glancing at this quarter's cash flow) -- but I was surprised that the CFO/CEO felt comfortable saying this (on a personal liability basis).

 

Anyone who has trade-in credit with them probably doesn't want to leave it there for the PS5/Scarlett launch.

Right - he can say whatever he wants in an unaudited 10Q :p

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EternallDarkness

EternallDarkness

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55 minutes ago, RedSoxFan9 said:

Why did they open so many stores in the first place? 

 

You see overexpansion or rapid expansion in a ton of businesses. Starbucks, Quiznos, etc. The outlook seems great at the time so they franchise like crazy until there is a store on every corner only to suddenly realize they've screwed themselves. of course in gamestop's case it doesn't help that most of the stores and the company in general is run like crap. Heck within 15 miles or so of where I live there are like 5-6 gamestops. That might be fine if the stores were run well or they had a product that couldn't be gotten anywhere else, but everyone sells games, and usually for cheaper and without 10 thousand stickers all over the boxes or being asked a dozen times if you want to preorder something every time you buy something. Seriously is there any reason to go a gamestop? Only time I do is if they have a great sale.  One company that seems to understand rapid expansion is not a great idea is Chick fila. Love them or hate them they know what they are doing. It's easier to get into Harvard than to get a Chick fil-a franchise. They have a crazy interview process, often requiring 8-9 in person interviews as well as written essays. And yet if accepted the cost of a franchise is only 10 grand! with the average franchise pulling in 4 million a year.

 

lol, sorry for the Chick fil-a info dump. My nephew is a junior this year and has to start thinking about college, so when I saw the article about being easier to get into the Harvard than getting a franchise I just had to read it and I guess it stuck with me.

 

Back to gamestop, see this reminds me that I have a gift card I got from doing some survey a while back that I really need to use. And I guess I better do it before they all go out of business :p 

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atom631

atom631

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Posted
2 hours ago, RedSoxFan9 said:

Why did they open so many stores in the first place? 

 On my drive to work, I used to pass no less than 4 Gamestops. and only about 3 miles in the opposite direct was another one. 

 

There are less 7-11s and Starbucks on my route than Gamestops. 

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Jason

Jason

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1 hour ago, EternallDarkness said:

Seriously is there any reason to go a gamestop?

 

Back when Nintendo products weren't being sold on Amazon because they were still feuding over the 3DS hinge issue I bought my New 3DS XL from a GameStop. And when the Switch launched I decided to try to save money on a Pro controller by just using the joycons but quickly realized Zelda was going to be unplayable for me that way so I went out and bought a Pro controller at my local GameStop because I got my Switch at launch and didn't want to have to wait for a Pro controller to arrive from Amazon to get to keep playing. But I definitely go in there outside of very specific instances like those.

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