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GameStop Terminates CEO Amidst Declining Revenue

GameStop announced on Wednesday that it has terminated its CEO Matthew Furlong as of June 5. Gamestop is characterizing his termination as “without cause” after the completion of a termination agreement. Furlong held his position as CEO of the company for two years.

Gamestop's general counsel Mark Robinson assumed the title of General Manager and will be the company's principal executive officer. Robinson will report to Ryan Cohen, whom the company appointed executive chairman of the board. Cohen's responsibilities include capital allocation and overseeing management.

The company's sales declined 10% in the first quarter of the fiscal year ending April 29. It experienced a decline of 16% in the U.S. from US$995 million to US$832 million year-on-year. The company had adopted aggressive cost-cutting to narrow its losses in the previous fiscal year but still lost US$300 million.

GameStop's quarterly financial report for the third quarter ending on October 31, 2020 had announced that it would be closing 700 stores within the year. Since 2019, GameStop had closed about 800 stores worldwide.

Sources: GameStop, ICv2 (Milton Griepp)