GameStop confirms closure of Irish stores after losses surpass €40m

Most recent company accounts report GameStop employed more than 230 people across Ireland

GameStop's closure of its Irish stores follows the company's first profitable quarter in the US in two years. (AP Photo/Jeff Roberson, File)

Retailer GameStop has confirmed the closure of its 35 Irish stores in a 'disappointing' announcement shared on the company's social media.

Once operating more than 50 stores nationwide, GameStop has steadily winded down its Irish operations over the past decade, announcing in March that it would be "ceasing the provision of a number of services across its Irish stores and website."

As part of the announcement, the retailer has launched a closing-down sale with gift card holders being urged to spend them "as soon as possible."

Currently, GameStop operates 35 stores nationwide, eight of which are in Dublin, with six in Cork and three in Limerick. The company has not yet confirmed how many jobs will be impacted, however, according to its most recent financial statement submitted to the Companies Registration Office, the retailer employed more than 230 people across Ireland in 2022.

Also in its financial statement, the company warned of upcoming challenges for the 2022/2023 fiscal year, which "raised questions regarding going concern." Reporting an increased after-tax loss of more than €6m, GameStop said its net liabilities exceeded €40m, up from €34.1m the previous year.

Additionally, GameStop said it would "consider closing any stores that are not performing to expectations or where the cost base, particularly occupancy costs, are out of line with the business levels in the location."

The closure of GameStop's Irish stores follows the company's first profitable quarter in the US in two years. Net income at the retailer rose to $48.2m (€43.7m), compared with a loss of $147.5m (€133.8m) just a year earlier.

Speaking on the results of its US arm, the retailer's chief executive, Matt Furlong said: “GameStop is a much healthier business today than it was in the start of 2021. We have a path to full-year profitability.”

In January 2021, GameStop's stock price dominated headlines following a mass online movement taking aim at Wall Street short sellers. Widely regarded as a "David vs Goliath" victory, investors successfully rose the company's shares by more than 1800%, leading to those who bet against the company suffering billions in losses.