Key Takeaways
1. GameStop plans to close between 295 and 410 stores in the U.S. by Q1 2026, following 590 closures in the previous year.
2. CEO Cohen received performance-based stock options worth around $35 billion, contingent on reaching a $100 billion market cap and $10 billion net EBITDA.
3. Social media has been active with lists of confirmed and rumored store closures, though these have been removed by moderators.
4. A review of GameStop’s store portfolio has already led to significant closures and more are expected for fiscal 2025.
5. GameStop is also scaling down internationally, closing operations in multiple European countries and considering shutting down stores in New Zealand.
GameStop is set to close a significant number of stores across the United States, with estimates suggesting that between 295 and 410 locations may shut down in the first quarter of 2026. This figure does not count the 590 stores that were closed last year.
CEO’s Performance-Based Stock Options
In related news, GameStop’s CEO has been granted performance-based stock options with an estimated worth of around $35 billion. However, this is contingent on the company achieving a market capitalization exceeding $100 billion and a net EBITDA of about $10 billion, as reported by Reuters.
Cohen took over as GameStop’s CEO in September 2023 and is also the biggest shareholder of the company. He does not take a fixed salary or guaranteed bonuses. His compensation is tied to specific performance goals.
Store Closures and Employee Reactions
Notices about the upcoming store closures have been circulating on social media, leading to lists being created on platforms like the “GameStop Closing List” and the official GameStop Subreddit, although those lists have now been removed by moderators. These reports provide information on confirmed store closures and rumors regarding potential shutdowns in states such as New York and Connecticut.
Recent updates indicate that certain GameStop locations, including those at Enfield Square Mall in Connecticut and Lenox Square Mall in Georgia, closed their doors in early January. Former employees have expressed frustration over the layoffs, especially since these job losses follow an SEC filing from GameStop in February 2025, which stated:
“We have also began a thorough review of our store portfolio, which includes determining which stores to close based on many factors, including current market conditions and individual store performance.”
Future Store Closures Ahead
This review has already led to the closure of 590 stores in the U.S. during fiscal 2024. Although the review is still in progress and no specific stores have been named for closure, many more closures are anticipated for fiscal 2025.
To give some context, GameStop’s fiscal year 2025 wraps up on January 31, 2026, suggesting that more unfortunate store closures may be on the way for what used to be a popular destination for video game enthusiasts just a few years ago.
International Scaling Down
In addition to domestic closures, GameStop is also reducing its international presence. The company has sold its operations in Italy and closed stores in Germany, Ireland, Switzerland, and Austria. Plans are also underway to divest its Canadian operations. Currently, there are rumors that GameStop is looking into shutting down stores in New Zealand, where 38 locations are in operation.
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