GameStop Corp. (GME) announced on Friday that its Chief Executive Officer Michael Mauler has suddenly decided to step down for personal reasons, after taking charge of the company just three months ago. Mauler isn’t eligible to severance or other benefits. The board has named Daniel DeMatteo to oversee the business until the appointment of a permanent CEO.
The announcement will create further difficulties for the already struggling retailer.
70 years old co-founder, DeMatteo said in a statement that it is a natural step for him to accept this responsibility and lead the company, given his tenure and understanding with GameStop and its associates.
The Grapevine, Texas-based company has been hit by departure of several senior executives in the near past. Earlier this year, GameStop fired its Executive Vice President Michael Hogan and COO Tony Bartel. Its Chief Marketing Officer Randy Gier, HR head Mike Buskey and Chief Information Officer Michael Cooper also left the company.
The aforesaid departures follow the exit of longtime CEO Paul Raines, who took a medical leave in late 2017 and died in March.
Loop Capital Markets’ analyst Anthony Chukumba stated in a note that Mauler’s resignation comes as a surprise, considering the fact that he had been CEO for just three months.
The biggest independent retailer of video games is facing difficulties in adjusting to a world where customers have started purchasing software online. To offset the deteriorating demand for video games, GameStop has increased its e-commerce operations, beside adding more toys and collectibles.
The company is also trying to limit costs. Last year, it sold mobile game publisher Kongregate. It is also looking forward to selling its Cricket prepaid wireless stores.
GameStop shares fell 2.57 percent to $12.71 on Friday following the news of Mauler departure. The stock has been declining since the company announced a disappointing full-year profit guidance earlier this year.