CEO of GameStop Corp Michael Mauler stepped down abruptly after only three months at the helm, bringing about new upheaval to the retailer that is already struggling to jumpstart its growth.
Daniel DeMatteo, who is the co-founder of GameStop, was appointed by the board to operate the business while a successor for Mauler is found.
Mauler has resigned due to personal reasons, said a spokesperson for the business and is not entitled to any severance or other form of separation benefits.
DeMatteo in a prepared statement said that given his tenure and his familiarity with the business and its associates, it is only natural for him to fill this role and guide the company during this period while the board searches for a new permanent CEO.
The quick exit by Mauler follows a shakeup that took place in February, when two high-ranking company executives were fired. Those executives COO Tony Bartel along with EVP Michael Hogan were let go by the board.
Other executives have left. Included amongst those that have left are Mike Buskey the head of human resources, Michael Cooper the CIO and Randy Gier the CMO. The moves came following the death of Paul Raines the longtime CEO, who took a leave of absence for medical reasons last November and died this past March.
GameStop posted a profit outlook in early 2018 that disappointed investors, extending a slump the stock has been going through. On Friday, shares fell again after the change in CEO. Shares fell by as much as 4.3%.
One Wall Street analyst said that many were surprised by the resignation of Mauler particularly due to the fact he was the CEO for only three months and that GameStop had cleaned house when it fired a pair of executives that was in conjunction with the new CEO taking over the top spot three months ago.
The company, which is the biggest independent video games retailer, has been struggling in its attempt in adding to a world in which software is delivered often time online.
Part of the company’s comeback efforts included it ramping up its operations online and adding additional toys as well as collectibles. It also acquired hundreds of wireless stores owned by AT&T in 2016 in an attempt to reduce dependence on the video games.
A management change is not likely to bring about an immediate change to strategy, said one analyst, but could make the board consider any strategic alternatives.