GameStop's stock took a sharp tumble on Tuesday, plummeting 8.49% intraday as the video game retailer grappled with mounting challenges. The company's share price decline followed reports of its plans to shutter over 100 store locations in January, exacerbating concerns about its long-term viability.
The move to close down a substantial number of its brick-and-mortar stores comes on the heels of GameStop closing over 200 locations in 2024. Historically, retailers that have shuttered a high volume of their physical stores have often encountered financial struggles and, in some cases, declared bankruptcy.
Compounding the challenges facing GameStop is the company's reported efforts to hire a publicist with the aim of revamping the public image of its CEO, Ryan Cohen, and the company itself. This move suggests the existence of negative public perceptions surrounding the video game retailer's leadership and overall brand perception.
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