That was a quick turnaround.
GameStop CEO Michael Mauler has stepped down just three months after getting the job. This is just the latest blow to the retailer, which has struggled to keep its revival going of late.
GameStop’s Board of Directors appointed Daniel DeMatteo, the chain’s now 70-year-old founder, to take Mauler’s place as they search for a replacement. Mauler supposedly stepped down for personal reasons, but due to that, he gets no severance or other such benefits. In a statement to Bloomberg, DeMatteo said:
Given my tenure and familiarity with the company and our associates, it’s a natural step for me to assume this role and guide the business at this time while the board searches for a permanent CEO.
Mauler’s exit was a surprise, given that the company had fired both COO Tony Bartel and Executive VP Michael Hogan in February. With the firing of both coming after the death of former CEO Paul Raines, things haven’t been looking great for the company.
We were very surprised by Mauler’s resignation, particularly given the facts he had been CEO for just over three months and GameStop ‘cleaned house’ by firing Bartel and Hogan in conjunction with Mauler taking the top spot. Management turmoil is the last thing GameStop needs.
– Anthony Chukumba, Loop Capital Markets, in a note.
Gamestop has been struggling in the current age, where customers can easily buy games online. While they will likely continue with plans to revitalize their stores by stocking collectibles, and making sure their e-commerce is solid, they may soon be making tough decisions. They are already planning the sale of their Cricket Wireless stores.
Source: Bloomberg
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