The chief executive at GameStop Corp. has been shown the door.
The video game and electronics retailer said that its board has elected Ryan Cohen as executive chairman, effective immediately. In conjunction, GameStop said its former CEO — Matt Furlong — has been “terminated.”
Furlong took the reins at GameStop in June 2021. He joined the company from Amazon, where he worked for nearly nine years. Prior to joining GameStop, he led the growth of Amazon’s Australia business.
Billionaire activist investor Cohen, who co-founded Chewy and sold it to PetSmart for $3.35 billion in 2017, took a stake in GameStop in 2020. In January 2021, he and two other former Chewy executives were named to the company's board as part of an agreement with management. In April 2021, he was named chairman. Cohen's investment firm, RC Ventures, currently has an 11.9% stake in GameStop,
GameStop did not provide a reason for Furlong's firing. But in its quarterly securities filing, the company said Cohen’s leadership would be good for shareholders.
“We believe the combination of these efforts to stabilize and optimize our core business and achieve sustained profitability while also focusing on capital allocation under Mr. Cohen’s leadership will further unlock long-term value creation for our stockholders,” GameStop said.
The news of Furlong's departure came almost at the same time as the company reported a net loss of $50.5 million, or a loss of $0.17 per share, for the quarter ended April 29, down from a loss of $157.9 million, or $0.52 a share, in the year-ago period. (The company incurred $14.5 million in transition costs related to its restructuring efforts in Europe.)
Revenue fell to $1.24 billion, down from $1.38 billion. Selling, general and administrative expenses fell to $345.7 million, down from $452.2 million in the year-ago quarter. (In the prior quarter, ended January 28, GameStop reported its first quarterly profit in two years.)
As executive chairman, Cohen’s responsibilities include capital allocation and overseeing management.