GameStop announces leadership shakeup, terminating CEO Matt Furlong
Cohen will see his role change from chairman to executive chairman
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GameStop on Wednesday revealed a major leadership shake-up.
The retailer said in a press release it had terminated Matt Furlong, who became CEO of GameStop in 2021. It also disclosed the move in a filing submitted to the Securities and Exchange Commission (SEC).
The company also said Wednesday that Ryan Cohen, a co-founder of Chewy, will see his role at GameStop change from chairman to executive chairman.
A GameStop store on 14th Street at Union Square, Jan. 28, 2021, in the Manhattan borough of New York. (AP Photo/John Minchillo / AP Newsroom)
Cohen’s appointment to that position became effective immediately. As executive chairman, he will be tasked with "capital allocation, evaluating potential investments and acquisitions, and overseeing the managers of the Company’s holdings," according to the SEC filing.
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FOX Business reached out to GameStop for additional comment on Furlong’s termination.
In the SEC filing, GameStop also detailed Furlong’s resignation from the board of directors. His departure from the board "did not result from any disagreement with the Company on any matter relating to the Company’s operations, policies or practices," the filing stated.
The company tapped Mark Robinson for two roles — general manager and principal executive officer.
The GameStop location off Adams Road in Auburn Hills, Mich., Feb. 17, 2012. (iStock / iStock)
"Mr. Robinson’s responsibilities will include administrative matters, corporate development, legal affairs and support for GameStop’s holdings, including the oversight of other executive officers besides the Executive Chairman, and he will report directly to Ryan Cohen, as Executive Chairman," the company said in the filing. "Mr. Robinson will continue to serve in his roles as the General Counsel and Secretary of the Company."
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A GameStop video game store entrance facade in a strip mall in San Jose, Calif. (iStock / iStock)
In first-quarter financial results GameStop put out Wednesday, it showed the retailer had $1.2 billion in net sales and $50.5 million in net losses for the three-month period. First-quarter net sales declined 10% compared to the same period in 2022, while the net loss shrank 68% year-over-year.
The price for GameStop stock closed around $26.11, later dropping 19%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 27.70 | +0.34 | +1.24% |
RC Ventures, which Cohen manages, owned nearly 12% of common GameStop stock as of late April, according to the retailer’s most recent proxy statement.
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Cohen has a personal fortune of $3.6 billion, Forbes reported.