alfredofroylan on 03 May 2010
This rummor started at GAF but seems like thing is getting real according to Joystiq.
After a handful of reports from several current GameCrazy employees and about a dozen calls to GameCrazy outlets across the country, we believe that the retailer will in fact be shuttering its remaining 250 or so locations in the coming weeks. Speaking with one such GC employee in central Pennsylvania, we were told, "Movie Gallery as a whole [GameCrazy's parent company] yesterday filed for Chapter 7, which indicates that the whole company is going through liquidation. I was in on the conference call yesterday ... it looks like this week and the week after they're going to go through finding a liquidation company to buy [the remaining products]. It's going to be business as usual for the next two weeks, we'll see our releases for the next two weeks, but we'll likely be closed by the end of June."
The alleged bankruptcy filing has yet to appear on Movie Gallery's stock page or in the SEC database. We've attempted to gain official word from corporate, but the company refuses to acknowledge whether the chain is closing. Whether there was any internal documentation, one employee told us, "Unfortunately, there aren't any new memos on the intranet related to it... the last one was on 4-21 ("Important Closing Store Update"), and then there were a few on 4-20 ("Select In-Store Programs Cease" and "Letter from Roger Dunlap - Closing Store Announcement") and one on 4-19 ("Special Order Games Department Closing") The newest stuff was on the conference call yesterday, which I wasn't apart of."
That said, our past experience with GameCrazy has shown that when several employees tell identical stories about store closures across multiple states, they're not likely colluding on an elaborate ruse. Additionally, we were told by an employee that "after the 18th [of May], we're done with pre-orders." He also encouraged customers with pre-orders to come in and pick up any deposits they've placed on games being released any time beyond the immediate future. If you're a current GameCrazy employee with information you'd like to share, we'd love to hear from you.
The alleged bankruptcy filing has yet to appear on Movie Gallery's stock page or in the SEC database. We've attempted to gain official word from corporate, but the company refuses to acknowledge whether the chain is closing. Whether there was any internal documentation, one employee told us, "Unfortunately, there aren't any new memos on the intranet related to it... the last one was on 4-21 ("Important Closing Store Update"), and then there were a few on 4-20 ("Select In-Store Programs Cease" and "Letter from Roger Dunlap - Closing Store Announcement") and one on 4-19 ("Special Order Games Department Closing") The newest stuff was on the conference call yesterday, which I wasn't apart of."
That said, our past experience with GameCrazy has shown that when several employees tell identical stories about store closures across multiple states, they're not likely colluding on an elaborate ruse. Additionally, we were told by an employee that "after the 18th [of May], we're done with pre-orders." He also encouraged customers with pre-orders to come in and pick up any deposits they've placed on games being released any time beyond the immediate future. If you're a current GameCrazy employee with information you'd like to share, we'd love to hear from you.
http://www.joystiq.com/2010/05/01/rumor-gamecrazy-closing-all-remaining-stores/
They closed 200 stores last October so this looks like the end for another retailer; with the increasing competition from Wal Mart and online retailers seems difficult for GC to survive.
