GameStop Corp., the video-game retailer championed by day traders this year, is seeking a new chief executive officer as part of a shake-up spurred by activist investor Ryan Cohen, Reuters reported Monday.
The company is looking to replace current CEO George Sherman as it shifts from its brick-and-mortar roots to an e-commerce focus, Reuters said, citing unidentified people familiar with the situation. GameStop has tapped an executive recruiter to help with the search, the news outlet said. Sherman has held the CEO role for two years.
GameStop didn’t immediately respond to a request for comment.
Cohen, who previously led the pet-supply site Chewy, has pushed to replace key GameStop executives with e-commerce veterans, including ones from Amazon.com Inc. -- a company he has vowed to challenge more directly. The company said this month that it intends to elect Cohen as its next chairman, cementing his influence.
During the turnaround effort, GameStop has become a favorite of traders using social platforms like Reddit. But that run-up is fading. Ascendiant Capital Markets analyst Edward Woo downgraded the retailer to sell from hold, and the stock slipped 10% on Monday. It marked the sixth straight day of declines.
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