GameStop pivots to retro stores as it looks to cash in on gaming nostalgia

In an interesting twist this week, GameStop (NYSE:GME) announced the opening or restyling of several “retro” locations that sell old consoles and hardware, as well as software discs. The retailer’s retro website includes games for NES, SNES, Game Boy, Game Boy Advance, N64, DS, GameCube, Wii, Wii U, PS1, PS2, PS3, PS Vita, Xbox, Xbox 360, Sega Dreamcast, Sega Saturn, and Sega Genesis.

On the financial front, GameStop Corp. (GME) disclosed on Wednesday that the company voluntarily terminated its credit facility, including all commitments and obligations under the credit agreement. The termination was effective as of August 27. As a result, the company’s principal sources of liquidity will be cash from operations and cash on hand.

The development is not a total surprise, with GameStop (GME) estimated to have as much $4 billion in cash following the sale of stock in June. With its Q1 earnings report, GameStop (GME) reported long-term debt of just $14.3 million, which was tied to a low-interest, unsecured term loan associated with the French government’s response to COVID-19.

GameStop (GME) is scheduled to report Q2 earnings on September 10 after the market closes.

Shares of GameStop (GME) were up 0.85% in postmarket trading.