GameStop has removed its CEO and elected Ryan Cohen executive chairman.
Cohen was elected to the role by the video game retailer’s board of directors, effective immediately, and will be responsible for capital allocation and overseeing management, GameStop said in a Wednesday (June 7) press release.
Cohen took a stake in GameStop in 2020 and was named to the retailer’s board in 2021, CNBC reported Wednesday.
“In conjunction, the company’s former CEO has been terminated,” the company said in the press release.
Furlong also resigned as a director on Monday in a move that was not due to any disagreement with the company, GameStop said in another filing with the Securities and Exchange Commission (SEC).
The Form 10-Q said that along with Cohen being elected executive chairman, Mark Robinson has been appointed as the company’s principal executive officer with the title of general manager.
“We believe the combination of these efforts to stabilize and optimize our core business and achieve sustained profitability while also focusing on capital allocation under Mr. Cohen’s leadership will further unlock long-term value creation for our stockholders,” the company said in the Form 10-Q.
GameStop also released its results for the quarter ended April 29 on Wednesday, showing net sales of $1.237 billion for the quarter, down from $1.378 billion in the same quarter the previous year.
“The company will not be holding a conference call today. Stockholders can review the company’s Form 10-Q,” GameStop said in a press release.
Three months earlier, at the time of its previous earnings release, GameStop’s turnaround was continuing as it reported its first profit in years.
During the quarter that ended in January, the company had seen a net profit of $48.2 million, versus a loss of $147.5 million recorded in the same quarter a year earlier.
“GameStop is a much healthier business today than it was at the start of 2021,” Furlong said at the time.
GameStop had for some time been trying to move into the digital world, as most gaming activity now takes place online, and Furlong said the company was working to transform itself from a legacy, brick-and-mortar business into one that meets customers’ needs through multiple channels.