Gamestop CEO Michael Mauler Has Abruptly Resigned
GameStop has announced that the CEO Michael Mauler, in a rather unexpected move, has resigned after just three months on the job. Mauler had just been appointed to the position in February after the late J. Paul Raines stepped down last year due to health reasons.
GameStop has not disclosed the reasons for Mauler’s resignation further than citing “personal reasons” as the cause of his resignation. Mauler was a 16 year veteran at the gaming company, and his resignation will likely disrupt whatever traction the struggling company has been trying to gain. Mauler’s quick exit comes after the shake-up in February, when GameStop fired both COO Tony Bartel and Executive VP Michael Hogan. Many in the industry, including Wedbush Securities Michael Pachter, are calling this both “shocking and disruptive.” In the interim, Daniel DeMatteo will be the acting CEO until they find a permanent replacement. In a recent statement DeMatteo had this to say, “Given my tenure and familiarity with the company and our associates, it’s a natural step for me to assume this role and guide the business at this time while the board searches for a permanent CEO.”
GameStop has recently reported positive growth in sales for both games and collectibles at its stores, which was particularly driven thanks to the success of the Nintendo Switch. Unfortunately this hasn’t stopped disappointment from spreading amongst investors, as the company expects sales to be down as it struggles to keep up with the transition of the industry into the digital age. Anthony Chukumba, a Loop Capital Markets analyst stated, “We were very surprised by Mauler’s resignation, particularly given the facts he had been CEO for just over three months and GameStop ‘cleaned house’ by firing Bartel and Hogan in conjunction with Mauler taking the top spot. Management turmoil is the last thing GameStop needs.”
The shares for the company fell on Friday as much as 4.3 percent to $12.47. It will be interesting to see what this means for GameStop moving forward. What are your thoughts? Let us know in the comments below and keep it locked for updates!