Struggling retail chain GameStop is discussing a possible buyout with private equity firms, according to Reuters. The report says that one of many private equity firms is Sycamore Partners and that GameStop has employed a monetary advisor to assist with the talks, although there’s no assure deal will come to fruition.
Founded in 1984 and as soon as a mainstay for avid gamers, GameStop has struggled to manage with competitors from on-line retailers like Amazon and digital distribution platforms together with Steam, even after a number of makes an attempt to diversify its enterprise mannequin. For instance, final fall GameStop introduced a used recreation subscription service, however that was shelved, reportedly because of issues with the chain’s point-of-sale system. Despite different efforts, together with promoting secondhand video games and units and the acquisition of novelty maker ThinkGeek in 2015, the company’s stock has fallen steadily since November 2013, when it hit $56.53 a share, to $13.96 now.
Reuter’s report comes a couple of month after investor Tiger Management sent a letter to GameStop, asking it to launch a strategic evaluate of its enterprise mannequin. Around that point, CEO Michael Mauler also resigned after only three months in the position, citing private causes. Microsoft Xbox government Shane Kim began serving as interim CEO at first of June.
Sycamore Partners stated it has no remark. TechCrunch has additionally contacted GameStop.