News: GameStop CFO to step down after Reddit driven stock rally.
NEW YORK (Reuters) – GameStop CFO Jim Bell will step down next month, the video game retailer said Tuesday as it focuses on shifting into technology-driven sales amid the big bets on its stock.
According to GameStop, Bell’s resignation was not due to a disagreement with the company regarding its business operations, including accounting policies and practices.
However, a source said that Bell’s exit had nothing to do with recent wild swings in GameStop stock sparked by retailers on Reddit’s social media site, when his departure was initiated by the company.
The source, a person familiar with the company’s thinking, said GameStop had grown dissatisfied with Bell as it transforms into a technology-driven company and was not confident that it would be the right CFO for the future.
Bell, who will be leaving the company on March 26, previously worked at stationary retailers Gap Inc and Coldwater Creek, as well as in the China Bistro of the restaurant chain PF Chang, according to his LinkedIn profile. He did not respond to requests for comment.
GameStop’s shares fell about 5% to $ 42.75 in expanded trading after the announcement. The stock is up about 140% this year after cutting back most of the profits that drove short sellers to cover losing bets and the company hit a record high of $ 482.95.
GameStop has also been targeted by shareholders who have focused more on digital distribution than the locations in malls.
New directors focused on this strategy have recently joined the board, and the source said these additions helped create more momentum for the CFO transition.
GameStop said it had started looking for a permanent CFO, adding that it would appoint Chief Accounting Officer Diana Jajeh as interim CFO if a permanent replacement was not found before Bell’s departure.
Reporting by Subrat Patnaik, Ankit Ajmera and Nivedita Balu in Bengaluru and Jessica DiNapoli in New York; Editing by Shailesh Kuber and Jane Wardell
Original Source © Reuters