GameStop's CEO Is Resigning After Failing to Turn Company Around
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The move comes as Ryan Cohen, a co-founder of pet food retailer Chewy.com and one of GameStop's board members, increasingly solidifies his control over the country's best-known gaming store. Earlier this month, GameStop announced that Cohen will become its chairman following the company's annual shareholder meeting on June 9.
Sherman joined GameStop in 2019, at a time when the company largely relied on its brick-and-mortar stores for business. The retailer has largely failed to keep up with online retailers like Amazon and had tapped Sherman with the hope of bringing its operations up to speed.
Prior to becoming GameStop's CEO, Sherman, a graduate of St. Michael's College and Central Michigan University, spent more than 25 years in leadership roles at Advance Auto Parks, Best Buy, Target and Home Depot. He was also the CEO of Victra, one of the largest retailers for Verizon Wireless.
But the task of turning GameStop around proved to be incredibly difficult for Sherman, who announced plans to shut down 200 stores shortly after he was brought on board. Though he revamped leadership and led the company's strategic partnership with Microsoft, Sherman also had to deal with the challenges brought by the pandemic. The global health crisis temporarily closed down the company's remaining stores, putting a hold on Sherman's efforts to revitalize GameStop.
"I am very proud of what we have accomplished at GameStop over the past two years, including during the difficult Covid-19 pandemic," he said in a statement. "It has been a privilege to lead so many dedicated, talented individuals, who collectively possess tremendous passion for the gaming industry."
According to Reuters, GameStop's board is now working with an executive headhunter to find Sherman's replacement. Sherman is expected to resign on July 31 or earlier, depending on when his successor is appointed. The board has reportedly been interviewing candidates with a deep background in the gaming, technology, and e-commerce sectors.
"GameStop appreciates the valuable leadership that George has provided throughout his tenure," Cohen, whose RC Ventures owns about 13% of GameStop, said in a statement. "He took many decisive steps to stabilize the business during challenging times."
News of Sherman's resignation sent shares of GameStop up 6% by midday, CNN notes. This year, the company's stock has been up 700% as a result of Reddit-driven trading frenzy that occurred in January.