GameStop pulls plug on Gilford store amid nationwide closings

In a world turning more and more digital, GameStop closed its brick and mortar location in Gilford Monday, and local and corporate leaders aren't commenting on the closure.

The store, at 1458 Lake Shore Road, Unit 150, was in the same plaza as Walmart Supercenter, and a variety of other stores. On Wednesday morning, the lights were on inside the store along with a television. There were still a few items on the shelves, and signs of games and other products being put away in boxes and bins. A metal security door was pulled shut inside the glass door, which was locked.

Previous store hours were from noon to 7 p.m., and employees inside declined to comment. A man who identified himself as the store manager opened the door to say it was closed, and deferred comment to corporate headquarters.

Gilford isn’t the only shop in the Granite State closing its doors, as storefronts in Claremont, Concord and West Lebanon also announced they would be ending operations. There are reports of hundreds of stores closing across the country.

A sign on the door about the closing indicated the closest open store is in Rochester.

GameStop reported its third quarter figures on Dec. 9, noting net sales were down compared to the previous year’s third quarter. It was reported GameStop had $821 million in sales for the period ending Nov. 1, compared to $860.3 million in the previous year’s third quarter.

However, it was also reported that selling, general and administrative expenses were $221.4 million compared to the previous year’s amount of $282 million. Operating income was also higher, at $41.3 million, compared with an operating loss of $33.4 million in the previous third quarter.

It was also noted the net income for the third quarter was $77.2 million, much higher than the net income of $17.4 million in the third quarter of 2024.

The third quarter numbers are much lower than second quarter figures released Sept. 9.

For the quarter ending Aug. 2, net sales were $972.2 million, which is $150 million more than the most recent figures released. Net income was $168.6 million, making the third quarter figures about $91 million less.

In the midst of these nationwide closures, GameStop released information about an incentive-based compensation package for Chief Executive Officer Ryan Cohen, where he would only receive payment if certain lofty goals are reached.

In a release dated Jan. 7, GameStop announced a plan described as being “100% at-risk and contingent on achieving significant performance goals.

“The award is designed to incentivize Mr. Cohen to achieve extraordinary growth,” the release states. “In order for the award to fully vest, the company’s market capitalization would have to grow to $100 billion and the company would need to achieve $10 billion in cumulative performance EBITDA (earnings before interest, taxes, depreciation and amortization).”

The company praised Cohen for being integral in what was described as a “significant turnaround of the company’s financial health and operational efficiency." The release states when Cohen joined the board on Jan. 11, 202, GameStop had a market capitalization of about $1.3 billion, and it currently has $9.3 billion, or a 615% increase in stockholder value.

The plan is set up in a nine-tiered, milestone-based structure referred to in tranches, and the first portion will only start if the market capitalization reaches $20 billion. The subsequent tier will require additional segments of $10 billion increases in market capitalization, with a $100 billion cap.

Cohen must also meet profitability targets, with the release stating the first tranche requires a “cumulative performance EBITDA hurdle” of $2 billion, up to the ninth tranche of $10 billion.

The percentage of the award received per tranche is 10% from one through seven, and 15% for the final two.

This award system was created by the company’s board of directors, and Cohen recused himself from the decision. It was approved Jan. 6, but will not take effect until a special meeting vote in March or April, by stockholders.

The release noted if Cohen doesn’t meet the goals, he will “have no opportunity to receive compensation from the award.”

Several requests for comment from GameStop corporate headquarters were not returned.