Coronavirus News: GameStop Ordered To Close Some Stores After Claiming It Is An Essential Business

GameStop (GME) has reportedly been forced to close its stores in Massachusetts after claiming it was an essential business during the coronavirus crisis because it reportedly sold “products and devices that are important to facilitate remote work, distance learning, and virtual connectivity.”

In the week prior to being ordered to close by state and local authorities, GameStop had switched to curbside pickup of orders, telling its workers to tape plastic bags to their hands and arms when dealing with customers, according to a company memo obtained by The Boston Globe.

Boston city inspectors had ordered a Dorchester, Massachusetts, location closed, revisiting the location the next day to make sure it wasn’t still open, the news outlet said. GameStop was reportedly given a nuisance citation, telling The Globe that it had closed all of its stores in the state.

On March 24, a stay-at-home ordered was issued for the state of Massachusetts that required all nonessential businesses to close because of the coronavirus pandemic.

GameStop had previously told its employees that they did not have to continue working if they did not feel comfortable during the COVID-19 outbreak. The company said at the time that it would pay furloughed employees for two weeks at their regular wage.

"It is important to take a moment to recognize the unending commitment and efforts of our store associates during this time,” GameStop said in a statement. "They are truly passionate about the service they provide our customers and the gaming community.

"All U.S. GameStop employees have been ensured that they do not have to work if they are not comfortable, or need to stay home to care for a family member. They have also been instructed to stay home if they feel sick or in any way they may have been exposed to a confirmed case of COVID-19. GameStop will pay all U.S. employees impacted by this an additional two weeks at their regular pay," the company added.

GameStop, which has more than 4,000 locations throughout the U.S., has been struggling to maintain a financial foothold as consumers turn to video game streaming. The company announced last month that it would be closing as many as 300 stores in 2020.

Shares of GameStop stock were up 8.2143% as of 11:50 a.m. EDT on Monday.