GameStop announced on Monday that Chief Executive Officer George Sherman would resign, as it swings from a brick-and-mortar video game retailer to an e-commerce firm. He is stepping down on July 31 or earlier upon the appointment of a successor. Its board is searching to identify chief executive officer candidates.
The development was reported by Reuters last week and is the biggest shakeup at GameStop since Ryan Cohen, the co-founder and former chief executive of online pet food company Chewy, joined the company’s board in January.GameStop is in the process of shifting its business away from the brick-and-mortar retailer model into an e-commerce business. It can compete with large-scale retailers such as Walmart and other technology companies such as Microsoft.
Sherman sold 76,097 shares of the company on April 15 for $156.44, a regulatory filing showed, delivering proceeds of $11.9 million. Gill attracted an army of day traders who piled into the brick-and-mortar video game stock and call options, pushing the shares up 400% in a single week in January. GameStop is up 720% for the year.The shares ticked slightly higher in after-hours trading with some investors perhaps heartened that Gill exercised his call options to get even longer.