EB Games Proposes Closure of All New Zealand Stores Amid Losses

EB Games has proposed the closure of all its stores in New Zealand, which would result in the disestablishment of all roles within the company in that region. Managing Director Shane Stockwell communicated this proposal in a note to employees, stating that it is not final and will undergo a full consultation process with affected team members before any decision is made.

The plan involves shutting down all remaining EB Games New Zealand stores and the New Zealand Distribution Centre. The retailer, owned by GameStop since 2005, currently operates 38 stores in New Zealand and 336 stores in Australia. Should this proposal move forward, it remains unclear how many jobs would be affected by the closures.

Stockwell highlighted that the New Zealand operations are no longer commercially viable, citing a “multi-million dollar loss during the 2024 fiscal year.” The retail market has been sluggish, and the company lacks confidence in any potential improvement in performance. He expressed disappointment regarding the situation, noting, “We are saddened to be in this position having already made significant and repeated efforts to turn the business around.”

Over the past year, EB Games has faced considerable challenges, including previous proposals to eliminate all administrative staff in New Zealand. The business has been under stress for some time, with store closures occurring in both Australia and New Zealand.

In an effort to support affected employees, the company mentioned that there may be opportunities for them to relocate and take up positions within the Australian EB Games operations. Employees have been invited to provide feedback on the closure proposal by January 12, 2024, as the company seeks to engage in discussions about the future of its New Zealand stores.

As this situation develops, the future of EB Games in New Zealand hangs in the balance, reflecting broader challenges facing the retail sector in the region.