VAMatt on 09 October 2020
| vivster said: Nobody should ever buy Gamestop unless they're doing it for scrap parts. |
That is very likely going to be the fate of GameStop. Somebody will buy them out of bankruptcy in a few years, shed some debt, greatly reduce the store count, and continue on. The name and inventory are valuable, but I don't think they can reduce the store count quickly enough to avoid bankruptcy in the medium term. They have too much debt, so they have to generate cash to service that debt. If they close half of the stores, which is probably what needs to happen to remain a viable business for a while, they won't be able to generate enough cash to pay the bills. So, that stuff will have to happen in bankruptcy.
