Traders work on the trading floor beneath the GameStop sign at the New York Stock Exchange (NYSE) on Aug. 8, 2022.
Andrew Kelly | Reuters
game stop The company said on Wednesday it fired chief executive Matthew Furlong and named board chairman Ryan Cohen as executive chairman, effective immediately.
Shares of GameStop fell more than 20 percent in extended trading after the video game retailer announced the termination.
The company did not provide a reason for the dismissal. In a securities filing, GameStop disclosed that Furlong was fired on June 5 and said he would be allowed to receive “payments and benefits related to the dismissal without cause.” Furlong also resigned from the company’s board of directors on the same day, reducing the board to just five members.
The document states that Cohen will be responsible for capital allocation, evaluating potential investments and acquisitions, and overseeing the managers of GameStop’s stake.
in a mysterious tweet “It won’t be long,” Cohen wrote about a half-hour after Furlong’s firing was announced.
activist investors and chewy The founders are known for rarely speaking publicly and making vague remarks online.
The decision to part ways with Furlong comes months after GameStop reported its first quarterly profit in two years at the helm.
On March 16, 2023, a GameStop store opens at a strip mall in Chicago, Illinois.
Scott Olson | Getty Images
As part of a leadership reshuffle, Alain Attal, a former Chewy executive and current member of GameStop’s board of directors, was named lead independent director of the board, the filing said.
GameStop’s general counsel, Mark Robinson, has been named the retailer’s general manager and chief executive officer. His responsibilities will include “administrative affairs, corporate development, legal affairs, and support of GameStop’s shareholding, including oversight of other executives outside of (Cohen),” the filing said.
Robinson will report directly to Cohen and will continue to serve as GameStop’s general counsel and secretary.
The announcement coincides with GameStop’s first-quarter earnings release. For the three months ended April 29, GameStop reported revenue of $1.24 billion, down from $1.38 billion a year earlier. It reported a net loss of $50.5 million, or 17 cents a share, compared with a loss of $157.9 million, or 52 cents a share, a year earlier.
The company incurred $14.5 million in transition costs due to restructuring efforts in Europe. It noted that more transition fees will be charged in the current quarter.
GameStop has boosted profit margins by slashing costs. Selling, general and administrative expenses for the quarter were $345.7 million, down from $452.2 million a year earlier.
In a press release, the company said it would not hold a conference call to discuss earnings for the quarter.
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