Home Entrepreneur GameStop's CEO will resign after being unable to turn the company around

GameStop’s CEO will resign after being unable to turn the company around

George Sherman is leaving the company because it seeks to compete with online retailers like Amazon.

April 19, 2021

3 minutes of reading

GameStop‘S George Sherman is giving up the role of CEO, as the company is struggling to move on ecommerce, company announced on monday.

The move comes as Ryan Cohen, co-founder of pet food retailer Chewy.com and one of GameStop’s board members, increasingly strengthens his control over the most famous company in the country. gaming store. Earlier this month, GameStop announced that Cohen would become the company’s chairman following the company’s annual shareholder meeting on June 9.

Related: 4 lessons from the GameStop price frenzy

Sherman joined GameStop in 2019, at a time when the company relies heavily on traditional stores for business. This retailer has largely failed to keep up with online retailers like Amazon and has been exploiting Sherman in hopes of making its operations grow rapidly.

Before becoming CEO of GameStop, Sherman, graduated from St. Petersburg University. Michael’s and Central Michigan University, have spent more than 25 years in leadership roles at Advance Auto Parks, Best Buy, Target and Home Depot. He is also CEO of Victra, one of the largest retailers for Verizon Wireless.

But the GameStop turnaround mission proved extremely difficult for Sherman, who announced plans to close 200 stores as soon as he was on board. Although he has improved leadership and leadership The company’s strategic partnership with MicrosoftSherman also has to deal with the challenges brought by the pandemic. The global health crisis temporarily closed the rest of the company’s stores, hampering Sherman’s attempt to revive GameStop.

“I am very proud of what we have achieved at GameStop over the past two years, including during the difficult Covid-19 pandemic,” he said in a statement. “It is a privilege to lead so many dedicated, talented individuals who share a great passion for the gaming industry.”

According to Reuters, GameStop’s board is currently working with an executive headhunter to find a replacement for Sherman. Sherman is expected to resign on July 31 or earlier, depending on when his successor is appointed. The Board is said to be interviewing candidates with in-depth knowledge of the gaming, technology and e-commerce fields.

“GameStop appreciates the valuable leadership that George has provided during his tenure,” Cohen, whose RC Ventures owns about 13% of GameStop’s shares, said in a statement. “He took decisive steps to settle his business during his probationary times.”

News of Sherman’s resignation sent GameStop shares up 6% by midday, CNN Note. This year, the company’s shares have risen 700% as a result of the frenetic Reddit-driven trading that happened in January.



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