More shakeups at GameStop: CEO to leave

GameStop has begun the search for a new chief executive.

The video game retailer said that George Sherman will step down from the role on July 31 or earlier if the company finds a successor before then. The board is leading a search to identify CEO candidates with the “capabilities and experience to help accelerate the next phase of the company’s transformation.”

Sherman was appointed CEO of GameStop in April 2019, the fourth person in three years to serve in the role. His departure is part of the ongoing shakeup of the company’s leadership team that has occurred in the wake of activist Ryan Cohen, co-founder of Chewy, joining the board in January. Nearly major GameStop executive has left since Cohen got involved with the company.  

Earlier this month, it was announced that Cohen, who has been pushing for GameStop to focus on online sales and trim its store portfolio, would become chairman of the company following its annual shareholders meeting on June 9.  RC Ventures, Cohen’s investment firm, has an approximately 13% stake in GameStop. 

“GameStop appreciates the valuable leadership that George has provided throughout his tenure,” stated Cohen. “He took many decisive steps to stabilize the business during challenging times. The company is much stronger today than when he joined.”

In a statement, Sherman said that he was very proud of “what we have accomplished at GameStop over the past two years, including during the difficult COVID-19 pandemic.”

“We have helped bring stability and strength to the business, including by de-densifying our store footprint, reducing costs and debt, and driving e-commerce growth,” he said.

GameStop also announced that a group of eight of its board members would be stepping down ahead of the company's shareholder meeting, including Nintendo executive Reginald Fils-Aimé and former Activision Publishing president Kathy Vrabeck.