(Reuters) – GameStop Corp is looking for a new CEO to replace George Sherman as it pivots from being a video game retailer to an e-commerce company, three people familiar with the matter said Monday.
It would be GameStop’s biggest shake-up since Ryan Cohen, co-founder and former CEO of online pet food company Chewy Inc, joined the board in January. Its shares have risen nearly 4,000% from a year ago, after it became the poster for retailers betting on shares called “memes”.
The GameStop board is working with an executive bounty hunter on the CEO search, sources said, requesting anonymity because the matter is confidential.
Several GameStop board directors are involved in the search and have spoken to potential candidates from the gaming industry as well as the e-commerce and technology sector, according to sources.
A GameStop spokesman declined to comment.
Shares of GameStop traded up 12% in the afternoon, down $ 138.75, giving the company a market value of about $ 10 billion.
The CEO replacement is the latest in a series of changes Cohen has pursued since he joined GameStop. Former chief financial officer Jim Bell and general manager Frank Hamlin are among the top executives who have left the company in recent weeks.
George Sherman, who has been CEO since April 2019, has been internally accredited to cut costs and run GameStop through the COVID-19 pandemic that led many traders to stop working.
But Cohen and other GameStop board members believe Sherman’s 25 years of experience with brick retailers, such as Advance Auto Parts Inc. and Home Depot Inc., are less relevant to the digital transformation they have begun as a company. technological.
Cohen, who last week was named chairman of GameStop’s board, is looking to turn the company into the chosen online destination for video game fans, just as Chewy won over pet lovers.
He pushed for several hires at GameStop, including Elliott Wilke as general manager of growth, Jenna Owens as general manager of operations and Matt Francis as general manager of technology. The three previously worked at Amazon.com Inc.
Cohen also attracted people from Chewy, including Andrea Wolfe as vice president of brand development, Neda Pacifico as vice president of e-commerce, and Kelli Durkin as vice president of customer service.
Svea Herbst-Bayliss Reports; Edited by Dan Grebler