GameStop has hired a new CEO and CFO, its current chief executive announced Wednesday, the latest addition to a company whose value has surged in 2021 as retail investors drove demand for the brick-and-mortar gaming store’s shares.
Matt Furlong, most recently the head of Amazon in Australia, will replace George Sherman as CEO by June 21, according to GameStop’s quarterly filing with the Securities and Exchange Commission.
Mike Recupero, a fellow Amazon executive, will become the company’s CFO.
Ryan Cohen, the former CEO of pet supplies store Chewy and who had criticized the company’s past leadership, was elected Wednesday as chair of GameStop’s board, according to Bloomberg.
While GameStop closed 118 stores and grew its sales by 25% compared to the first quarter in 2020, the company reported greater-than-expected losses per share and announced it planned to sell as many as 5 million shares.
GameStop shares initially fell more than 8% in after-hours trading.
Before signing off the earnings call, outgoing CEO Sherman expressed his gratitude for “an amazing group of shareholders who have so demonstrably exhibited their support for us” — referencing the retail investors whose feverish support and hype on Reddit and social media helped the company’s value soar more than 16 times what it had been worth barely five months earlier. Still, its share price has not returned the $483 it briefly achieved on January 28.
The wild swings in GameStop’s price have been mirrored by the shakeup of the company’s leadership. Before his election as board chairman, Cohen, the former Chewy CEO, had won a seat on its board in January with a mission to reform the company, which he had criticized for sticking to “an outdated business model” that prioritized physical stores over expanding online.
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