GameStop shares rise after retailer tapped Chewy co-founder Ryan Cohen to lead ecommerce transformation
A man is on the phone in front of GameStop on 6th Avenue in New York on February 25, 2021.
John Smith | Corbis News | Getty Images
GameStop’s shares rose 11% in premarket trading after the company announced Monday that it had enlisted Chewy co-founder Ryan Cohen to make the move to e-commerce.
Cohen chairs a special committee formed by the GameStop board of directors to support its transformation. Board members Alan Attal, Chewy’s former top operations manager, and Kurt Wolf, Hestia Capital Management’s chief investment officer, are also on the committee.
Cohen invested in GameStop last year to encourage the video game retailer to focus on selling online and move away from physical stores. His commitment to the company helped spark the stock’s wild ride earlier this year. GameStop’s shares are up more than 700% in 2021, giving the company a market value of $ 10.6 billion.
The committee has already appointed a chief technology technology officer, hired two executives to lead customer service and e-commerce fulfillment, and started the search for a new chief financial officer with tech or e-commerce experience. GameStop previously announced that current CFO Jim Bell will step down on March 26th. Citing sources familiar with the matter, Business Insider reported that Bell was marketed by Cohen.
The new committee has also appointed Attal as Chairman of the Board’s Nominations and Corporate Governance Committee and Wolf as Chairman of the Board’s Compensation Committee. The duties of the special committee include assessing GameStop’s operational objectives, capital structure and allocation priorities, digital capabilities, organizational footprint and human resources.