Major US electronics and videogame retailer Best Buy is closing 50 stores, and laying off over 400 employees, most of whom are in the corporate offices.
This comes directly after it was announced that the retailer reported losses of $1.7B over the last quarter, which was a drastic contrast from down from the $651M in profits during the same quarter last year. The company has lost over $1.2B in the past financial year; again, this was a drastic turnaround from its $1.3B financial 2011.
The department that reported the biggest loss was Best Buy's entertainment division which covers videogames and movies. It dropped 20% from year-to-year comparisons in the past quarter.
Best Buy's struggles represent a general worldwide depression in videogame outlets and retailers. UK retailer GAME recently wasby Royal Bank of Scotland, which should keep the retailer alive for the time being.