GameStop is planning to reopen stores in select areas, execs taking pay-cuts
Undaunted by the ongoing COVID-19 pandemic worldwide, GameStop is going to attempt to reopen some of its stores that were forced to close due to the illness. Amidst this, GameStop's senior-level management and executives will be facing salary reductions to compensate for the ongoing issues.
- A temporary base salary reduction of 50% for George Sherman, Chief Executive Officer, 30% for Jim Bell, Chief Financial Officer and the remainder of the executive leadership team.
- The Board of Directors has temporarily reduced cash compensation to directors by 50%.
- Other actions include:
- Beginning April 26th, certain other employees across the Company’s worldwide operating units will receive temporarily reduced pay of between 10% and 30%.
- Offered certain of the Company’s corporate support staff the option to either a temporary furlough or reduced workweek / reduced pay program.
- Reduced inventory receipts to match demand with a focus on key hardware, software and accessories products.
- Lowered capital spending to focus on mandatory maintenance or near-term high value strategic projects.
- Due to the impact of governmental regulations and certain landlord decisions to close properties, the Company did not make a portion of certain lease payments and remains in discussions with its landlords regarding ongoing rent payments, including potential abatement, deferral and or restructuring of future rents during this period of COVID-19 related closure.
Most locations across the United States will remain closed, with a third of them being entirely closed, and the rest open but operating only through curbside pickup. That will change in the coming days, however, with GameStop stores in South Carolina and Georgia planning to re-open and continue business as usual. Stores across Germany, Italy, and Austria will also re-open soon, while no locations in Australia were closed due to COVID-19 and will also continue as normal.
Store Operations
The Company announced today the following updates to its global store operations:
- Approximately one-third of U.S. stores locations remain closed, with two-thirds of stores closed to customers but available for curbside pick-up.
- The Company has begun the process of re-opening stores in Italy, Germany, Austria and the states of South Carolina and Georgia and is preparing for the potential to re-open in other operating countries and states in the coming weeks.
- All stores in Australia remain open for business with strong results continuing with approximately 24% comparable store sales for the nine weeks ended April 4, 2020.
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