said the manager
will retire by July 31, the latest in a series of changes to the video game retailer’s executive team since co-founder of Chewy Inc.
became a board member in January.
Mr. Cohen, who was named chairman of GameStop, had urged the company to focus on e-commerce and reduce the number of stores, among other things. The company is now working to make its decades-long brick and mortar business more technology-oriented.
Mr. Sherman has been CEO of the Grapevine, Texas-based company since April 2019. The company pointed out on Monday its annual filing in March, according to which the board had hired a third-party company to evaluate the company’s management. GameStop is focusing its search on candidates with a background in technology or video games, the Wall Street Journal reported last week.
A replacement for Mr. Sherman would be the sixth person to hold the role since late 2017.
« GameStop values the valuable leadership George has provided during his tenure, » Cohen said in the company’s announcement. « He has taken many decisive steps to stabilize business in difficult times. »
At least three of Mr. Sherman’s top lieutenants have left the company or announced plans to leave within the past few months. The Journal reported in February that the former chief financial officer
was forced out of his role while client manager
resigned last month. According to GameStop, Merchandising CEO Chris Homeister is stepping down due to lesser responsibilities and will be leaving the company in the company’s second quarter.
The leadership and board shuffling came when the company was under pressure to deliver results that match the recently inflated share price, fueled by a Reddit-fueled trading frenzy and so-called short squeeze when rising prices prompt investors to buy back stocks they sold short to reduce their losses.
GameStop stock traded below $ 3 per share in April last year as the pandemic triggered the temporary closure of the company’s brick and mortar locations. The stock ended 2020 at just under $ 19. The stock closed at $ 154.69 on Friday and rose about 6% on the Monday before trading.
GameStop has struggled with revenue growth for several years. Months before Mr. Sherman’s tenure began, the company ended a month-long search for a buyer. In GameStop’s final quarter, which also included the holiday shopping season, revenue declined slightly year over year as the coronavirus shutdown weighed on business.
However, the company has since pointed to improving sales trends. Mr Sherman has said that GameStop will benefit from initiatives like expanding its product range so as to be less dependent on the release of new game consoles like the like
Sony Group Corp.
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