GameStop Names Former Belk Stores CEO Nir Patel As COO

GameStop Corp. named former Belk CEO Nir Patel as its new chief operating officer, effective May 31, according to a company press release Monday (May 16).

As Belk CEO, Patel oversaw the growth of the retail department store chain to more than 300 stores in 16 states, the press release said. Before his stint at Belk, Patel held senior roles at Kohl’s and Lands’ End after beginning his career at Target and Gap.

Patel has about two decades of experience in operations, merchandising, supply chain, and retail and store operations, the company press release said.  He will replace Jenna Owens, the former chief operating officer, who left the company in October, seven months after her appointment, according to a Barron’s report.

GameStop’s stock is tumbling in early trading Monday, down almost 5% to less than $95 following the announcement of Patel’s appointment.

Related: Boston Consulting Group Sues GameStop Alleging $30M in Unpaid Bills

In March, Boston Consulting Group sued GameStop Corp. to recover $30 million in unpaid debt related to its efforts to bring the video game retailer out of a 2019 sales slump.

BCG alleged it spent tens of thousands of hours on the project and “overachieved” by creating more profit opportunities than were initially estimated. The complaint was filed in the U.S. District Court for Delaware. GameStop said the case lacks merit and reflects BCG’s pursuit of high prices over clients’ interests.

Also Read: GameStop Chairman Ryan Cohen’s Tweet Sends Stock Surging

Earlier in March, Chairman Ryan Cohen said he had purchased 100,000 shares of the company’s stock, paying between $96.81 and $108.82 for its shares. Cohen now owns 9.1 million GameStop shares or 11.9% of the company.

In late 2020, Cohen — who co-founded Chewy.com — criticized GameStop for its lackluster efforts to move into eCommerce. He joined the company’s board in January 2021 and became chairman in June. GameStop named Amazon alum Matt Furlong its chief executive in June.

GameStop’s stock has been on a roller-coaster ride since early last year when it was part of a social-media-fueled trading frenzy. Shares peaked at $350 last year before steadily dipping to as low as $78.11 when investors were concerned about the company’s performance in the last three months of 2021.