- GameStop fired CEO Matthew Furlong and appointed Ryan Cohen as CEO.
- The company did not provide a reason for the termination.
- Shares of the video game company fell more than 20% in extended trading after the news broke.
Traders work on the New York Stock Exchange (NYSE) trading floor below GameStop signs in New York, August 8, 2022.
Andrew Kelly | Reuters
GameStop said on Wednesday that its CEO Matthew Furlong has appointed its chairman Ryan Cohen as CEO, effective immediately.
GameStop shares fell more than 20% in extended trading after the video game retailer announced the termination.
The company did not provide a reason for the firing. In a stock filing, GameStop disclosed that Furlong was fired on June 5 and said he would be allowed to receive payments and benefits “associated with a no-cause termination.” Furlong also resigned from the company’s board of directors that same day, reducing it to just five members.
The statement indicated that Cohen will be responsible for allocating capital, evaluating potential investments and acquisitions, and supervising GameStop’s property managers.
in Hidden tweet About a half hour after Furlong’s shooting was announced, Cohen wrote, “Not for long.”
The activist investor and founder of Chewy is known for saying very little in public and making vague statements online.
The decision to split from Furlong comes just months after GameStop reported its first quarterly profit in two years while he was at the helm of the company.
A GameStop store operates at a mall on March 16, 2023 in Chicago, Illinois.
Scott Olson | Getty Images
As part of the leadership shakeup, Alain Attal, a former CEO of Chewy and a current member of GameStop’s board of directors, has been named a lead independent director of the board, according to the filing.
GameStop general counsel Mark Robinson has been named general manager of the retailer and chief executive officer. His duties will include “administrative matters, corporate development, legal affairs, and support for the GameStop holdings, including supervision of other executives along with [Cohen]according to the filing.
Robinson will report directly to Cohen and will continue to serve as General Counsel and Secretary for GameStop.
This announcement coincided with GameStop’s first-quarter earnings announcement. In the three months ending April 29, GameStop reported revenue of $1.24 billion, down from $1.38 billion in the year-ago period. It posted a net loss of $50.5 million, or a loss of 17 cents per share, compared to a loss of $157.9 million, or 52 cents per share, in the previous year.
The company incurred $14.5 million in transition costs related to restructuring efforts in Europe. She indicated that she will take more transition fees in the current quarter.
GameStop has improved its margins by cutting costs significantly. Administrative, general and selling expenses were $345.7 million for the quarter, down from $452.2 million in the same period last year.
In a press release, the company said it will not hold a conference call to discuss the quarter’s earnings.
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