On Monday, GameStop revealed that it had signed a lease for a 700,000-square-foot distribution warehouse, despite the company’s announcement that it had paid off its corporate debt earlier than anticipated.
The warehouse in York, Pa., which will help GameStop’s e-commerce operations, is scheduled to open in the fourth quarter of this year and will streamline the retailer’s East Coast shipping needs.
Separately, the video game retailer announced Monday that it had eliminated $216.4 million in long-term corporate debt due in 2023, leaving the company with no long-term debt.
GameStop shares — which have risen more than 800 percent this year in what has been called the “Reddit rally” in previously unloved stocks — were down 0.6 percent to $172.51 in early Monday trades.
The new warehouse and debt reduction are the latest efforts by Ryan Cohen, the chain’s largest individual shareholder, to revitalize the 37-year-old company.
The billionaire entrepreneur — who created Chewy.com and sold it to PetSmart for $3.3 billion — has been reorganizing the company’s management team and board of directors, including an April announcement that he will assume the chairmanship later this year.