GameStop signs lease for massive distribution warehouse, ditches debt

More On:


GameStop shares surge after company said it raised $550M in stock sales

GameStop execs to collect $269M on their way out

GameStop CEO to step down, lifting the retailer’s stock

Robinhood sues Massachusetts over regulatory clampdown

GameStop said it has signed a lease for a 700,000-square-foot distribution warehouse on Monday, even as it announced it has retired its corporate debt earlier than expected.

The warehouse facility in York, Pa., which will support the Texas-based retailer’s e-commerce business, is expected to be operational by the fourth quarter of this year and is meant to expedite GameStop’s shipping needs along the East Coast.

Separately, the video-game retailer said Monday it has erased $216.4 million in long-term corporate debt that would have come due in 2023, leaving it with no long-term debt on its balance sheet. 

GameStop shares — which have soared by more than 800 percent this year in what has been the dubbed the “Reddit rally” in previously unloved stocks — were recently off 0.6 percent at $172.51 in Monday morning trades. 

The new warehouse and debt paydown are the latest moves by the Texas-based chain’s largest individual shareholder, Ryan Cohen, to reinvigorate the 37-year-old company.

The billionaire entrepreneur — who founded and sold it for $3.3 billion to PetSmart — has been revamping the management team and board of directors, including a plan announced in April to install himself as chairman later this year.

Share this article:

Source: Read Full Article