The Irish arm of GameStop has estimated that the cost of shutting down its business here is €13m.
In March, video game retailer, GameStop announced the shut-down of its 35 stores here and online presence with the loss of 224 jobs.
The business shut down on June 24th last.
A note attached to new GameStop Ltd accounts states the costs connected to the closure of business is estimated to be approximately €13m which includes severance costs, reduction in lease liabilities and impairment of right of use assets etc.
The accounts show that the Irish business - owned by the Texas headquartered GameStop Corp - continued to be loss-making ahead of the closure with the firm recording pre-tax losses of €5.35m in the 12 months to the end of January 28th this year.
The accounts for GameStop Ltd show that the business recorded the pre-tax loss of €5.35m as revenues only dipped marginally from €40.36m to €40.24m.
Revenues at Gamestop Ireland were boosted during the year by sales of FIFA 23; Call of Duty: Modern Warfare 2: God of War and Grand Theft Auto 5.
The pre-tax loss of €5.35m was 11% down on the pre-tax loss of €6.039m in the prior year.
The accounts - signed off on June 30th last - show that the business reduced its operating losses by 30% from €2.46m to €1.72m last year.
Interest costs of €3.62m resulted in the pre-tax loss of €5.35m.
The losses to the end of January 28th this year resulted in the business having accumulated losses of €45.5m and a shareholders’ deficit of the same amount.
The company’s cash funds last year more than doubled from €2.95m to €6.88m.
The losses also take account of non cash depreciation costs of €2.1m.
The firm’s cost of sales this year totalled €30.46m in addition to €9.16m in administrative expenses and €1.66m in ‘other operating expenses’ which are management fees charged by related companies.
The firm’s staff costs this year increased from €4.6m to €5.2m, including salary costs which rose from €4.12m to €4.51m.
Staff numbers were made up of seven in management and 217 ‘direct’ employees.
Severance costs this year totalled €183,532.
At the end of January this year, the firm owned €52.25m to GameStop Global Holdings.
Globally, GameStop’s revenues last year dipped from $6.01bn to $5.92bn.
The business’s global losses last year totalled $302.1m.
- Reporting Gordon Deegan
