GameStop Closes Hundreds of Stores Amid CEO Payout Plan

GameStop has initiated the closure of hundreds of stores just days into 2026, signaling a significant reduction in its physical retail footprint. The move comes as the company's CEO, Ryan Cohen, is eligible for a $35 billion performance-based stock option payout. Reports indicate that approximately 390 locations have been shuttered, with an additional 10 pending confirmation, bringing the potential total to 400 closures.

Shoppers in locations such as Bensonhurst, Brooklyn, have reported finding signage announcing the shutdowns, offering limited-time trade-in bonuses as compensation. These closures align with the company's previous fiscal 2024 report, which noted the cessation of operations at 590 U.S. locations. For the payout to be realized, GameStop must achieve a market capitalization of $100 billion and $10 billion in cumulative performance metrics, a stark contrast to its current valuation of approximately $9.5 billion.

Reports of GameStop closing stores began to surface shortly after the start of 2026. Shoppers discovered signage at various locations indicating that their stores would be shutting down. One specific instance occurred in Bensonhurst, Brooklyn, where a customer shared a photo of a sign offering a 20% trade-in bonus for a limited time.

A social media post regarding the Brooklyn location stated: "This store is closed effective 1/8/26." The post also mentioned the employees by name, wishing them the best. Another sign, posted to Reddit on January 2, 2026, simply read, "Thank you for being a loyal GameStop customer." The sudden nature of these announcements has left many customers with questions regarding reservations and where to pick up existing orders.

Tracking efforts by third-party observers suggest the scale of the closures is significant. Reports claim that nearly 400 locations have been affected in the first week of the year alone.

The recent wave of closures is part of a longer-term trend for the gaming retailer. A December 2025 filing from the company revealed that it had ceased operations at 590 locations in the United States during fiscal 2024. The document also projected that the company anticipated "closing a significant number of additional stores in fiscal 2025."

Over the last decade, GameStop has consistently closed more stores than it has opened within the U.S. market. These closures often number in the hundreds annually. The company has been attempting to pivot its business model, focusing heavily on collectibles and internet culture trends to maintain relevance in a changing gaming landscape.

Simultaneous with the restructuring news, GameStop announced details regarding CEO Ryan Cohen's compensation package. Cohen, who assumed the CEO role in September 2023, stands to receive a staggering $35 billion in performance-based stock options.

The company's board of directors stipulated strict requirements for this payout. To receive the full amount, GameStop must achieve a market capitalization of $100 billion. Additionally, the company must reach $10 billion in cumulative performance before interest, taxes, depreciation, and amortization (EBITDA). Currently, GameStop's market capitalization sits at approximately $9.5 billion.

The official announcement stated, "The award is designed to incentivize Mr. Cohen to achieve extraordinary growth." This massive potential payout stands in contrast to the ongoing reduction of the company's physical presence.

In recent years, GameStop has explored various avenues to generate revenue beyond traditional game sales. The company has doubled down on selling collectibles and utilized meme culture to drive engagement. In August 2023, the company exited the cryptocurrency space, shutting down its NFT marketplace shortly after its launch.

More recently, the retailer held its first-ever "Trade Anything Day," an event that encouraged customers to bring in items for trade-in credit. The event reportedly caused frustration among employees due to the chaotic nature of accepting random merchandise. Additionally, reports indicate that GameStop's international branch, EB Games, has proposed closing its remaining stores in New Zealand.