A man is talking on the phone in front of GameStop on 6th Avenue on February 25, 2021 in New York.
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GameStop shares rose 11% in premarket trading after the company announced on Monday that it had turned to Chewy co-founder Ryan Cohen to lead the transition to e-commerce.
Cohen is chairman of a special committee on GameStop’s board of directors to help transform it. Board members Alan Attal, former CEO of Chewy and Kurt Wolf, chief investment officer of Hestia Capital Management, are also on the committee.
Cohen invested in GameStop last year to push the company to focus on online sales and move away from physical stores. His involvement with the company helped trigger the wild action of the stock earlier this year. GameStop shares have grown by more than 700% so far in 2021, giving the company a market value of $ 10.6 billion.
The committee has already appointed a chief technology officer, hired two directors to lead customer service and e-commerce fulfillment, and has begun a search for a new chief financial officer with experience in technology or e-commerce. GameStop previously announced that current CFO Jim Bell will resign on March 26. Citing sources familiar with the matter, Business Insider reported that Bell was fired by Cohen.
The new committee also appointed Attal as chairman of the board’s nomination and corporate governance committee, and Wolf as chairman of the board’s clearing committee. His responsibilities include assessing GameStop’s operational objectives, capital structure and allocation priorities, digital capabilities, organizational footprint and staff.