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GameStop CFO Resigns Weeks After Stock Market Enthusiasm

GameStop Corp.

After a social media-led enthusiasm soared the company’s stock price, the chief financial officer resigned a few weeks later, but only then fell.

Grapevine, Texas-based video game retailer has announced that Jim Bell will step down as Vice President and Chief Financial Officer on March 26. He was appointed in June 2019.

GameStop, which also sells consumer electronics and gaming products, didn’t explain why Bell resigned, but “his significant contributions and leadership, including the efforts of the past year during the Covid-19 pandemic.” I praised.

The company said it has begun searching for successors “to accelerate the transformation of the company.” If no permanent replacement is found by the time Bell resigns, Chief Financial Officer Diana Jage will be appointed as interim CFO.

GameStop was Chewy Inc last year. Under pressure from co-founder Ryan Cohen. He holds a nearly 13% stake through investment firm RC Ventures LLC. In November, RC Ventures sent a letter to GameStop’s board of directors urging: Conduct a strategic review Instead, focus on e-commerce to reduce your business’s reliance on physical retail.

In January, GameStop and RC Ventures agreed that former Chewy Chief Operating Officer Alan Attal and former Chewy CFO Jim Grube will join the board. The two companies also agreed to suspend the provisions until the 2022 Annual Meeting.

Jim Bell’s resignation will take effect on March 26th.


Photo:

Gamestop

Bell’s resignation had nothing to do with the company and its operations, policies, and practices, but it happened shortly after GameStop announced a few new employees to its leadership team earlier this month.Among them is former Matt Francis

Amazon.com Co., Ltd.

An executive who takes on the role of the newly created Chief Technology Officer.

GameStop needs to consider a CFO who has worked for a physical retailer with strong e-commerce operations to help develop a larger digital presence, according to research by financial services firm Wedbush Securities Inc. Analyst Michael Pachter said. According to the release on Tuesday, there are over 5,000 physical stores.

Joseph Feldman, managing director of investment bank Telsey Advisory Group, said RC Ventures is driving a major shift to more digital operations, so it is possible to find a financial officer with investment expertise rather than financial skills. Is high.

GameStop was one of the companies whose stock price soared in late January, driven by posts on Reddit and other social media sites. Shares rose from about $ 20 to $ 483 in the two weeks of January as retail investors urged each other to buy stocks online and squeeze out hedge funds that were betting that prices would fall.

U.S. regulators under investigation Whether there was market manipulation or other types of criminal activity that helped GameStop or other stock surges.

GameStop’s share rose about 13% on Monday After Keith Gill, one of the company’s investors, who has become prominent in recent weeks, disclosed a large stake on Friday. GameStop shares closed on Tuesday at $ 44.97, down 2.2% that day.

Prior to joining GameStop, Bell was CFO from 2016 to March 2019 and is the parent company of restaurant businesses such as PF Chang’s and True Food Kitchen, Wok Holdings Inc. Was the interim chief executive officer of. Previous roles in his career include executive vice president and CFO of hospitality company RLH Corp. and clothing retailer Coldwater Creek Inc. CEO was included.

Mr Bell did not immediately respond to the request for comment.

Write to Nina Trentman Nina.Trentmann@wsj.com And Mark Maurer mark.maurer@wsj.com

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GameStop CFO Resigns Weeks After Stock Market Enthusiasm

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