EB Games is considering withdrawing from the New Zealand market, with a proposal presented to staff that would see every store in the country shut down if it proceeds.

In a letter sent to employees, managing director Shane Stockwell said the plans were still at consultation stage and no final call would be made until feedback had been received from affected workers.

The proposal includes closing all remaining New Zealand stores, including stores at Riccarton, Hornby, and the Palms, as well as the national distribution centre, meaning every role within the business would be disestablished if the closure went ahead.

The company, which operates under Australian ownership and has been part of the GameStop group since 2005, has been under mounting financial pressure.

Physical game sales have continued to decline, and by late 2024 digital purchases made up about 95 percent of the gaming market, leading GameStop to shut large numbers of stores worldwide and significantly reduce its global footprint from more than 6000 locations in the mid 2010s to about 3200 by early 2025, with further closures continuing into 2026.

Stockwell said the New Zealand arm recorded a multi million dollar loss in the 2024 financial year and was no longer considered commercially sustainable. He said the retail climate remained weak and there was little confidence trading conditions would improve.

Stockwell said the company had spent the past three years trying to reshape stores, improve performance, and even explore the sale of the New Zealand business.

Administrative roles in New Zealand were removed early last year as part of restructuring efforts, he said, but those moves had not produced the turnaround leadership had hoped for.

Staff have been invited to provide feedback on the proposal, with consultation running through to 12 January.