US-based consumer electronics and wireless services retailer GameStop has scrapped plans to sell the company as part of the review of its strategic and financial alternatives.
On 29 January, the board of directors stopped its efforts to find a potential buyer for the company due to the lack of available financing on terms.
The company’s board with external financial and legal advisers started a review process to enhance shareholder value in June last year.
As part of this process, the board entered talks with third-parties regarding a potential sale of the company.
Earlier this month, the retailer completed the sale of its Spring Mobile business to authorised AT&T retailer Prime Communications. The transaction generated approximately $700m in immediate cash proceeds.
According to the company, the amount will be used to reduce its outstanding debt, fund share repurchases, reinvest in core video game and collectibles businesses to increase growth.
Commenting on the transaction, GameStop board of directors executive chairman Dan DeMatteo said: “We are pleased to successfully complete this transaction and begin 2019 with an increased focus on the video game industry and the rapidly growing collectables space.
“These are areas where we are well-positioned to leverage the GameStop brand and capitalise on our competitive position.”
In addition, the company’s board is currently searching for a permanent CEO and is working with an executive search firm for this.