If you’ve been following news on GameStop over the past few years, you know that the chain has been plagued by problems. Some of GameStop’s sales policies have been more than a little troubling, and employees have complained about how they’ve been treated. In a world where digital downloads reign supreme, GameStop’s business model also is becoming less and less relevant. For this reason, GameStop stores have been closing their doors.
Now, Reuters reports that there is a possibility that GameStop will be sold, reporting, “Sycamore Partners is one of the private equity firms that has expressed interest in GameStop, one of the people said. There is no guarantee the talks will result in GameStop deciding to sell itself, the people cautioned.”
The “people” referred to above are Reuters’ sources, described only as “people familiar with the matter” at the start of the report.
What happens if some company does buy out GameStop? Well, this is a business in distress, so whatever that company’s plans are, it will probably mean the end of GameStop as we know it. The company will either be broken down into parts, or the buyer will borrow against it and use that to finance a flip.
There was some talk back in October of GameStop converting into a rental company called PowerPass. Nonetheless, this did not come to pass. Could it still be a way for the chain to save itself, at least in a different form? It’s hard to say at this point. Regardless of what lies ahead, this chapter of GameStop’s history is likely drawing to a swift close.