Please ensure Javascript is enabled for purposes of website accessibility

Another GameStop Executive Heads for the Exits

By Rich Duprey - Updated Mar 23, 2021 at 8:31AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's the second C-suite executive to resign in as many months.

Exactly one month after GameStop (GME -3.56%) CFO Jim Bell announced his resignation from the company -- some say he was pushed out the door -- the video game retailer is announcing another executive is leaving.

Chief customer officer Frank Hamlin said he will be resigning from the company effective March 31, a sign, perhaps, the activist investors at GameStop are not finished cleaning house. The retailer is scheduled to report earnings after the market's close today.

Businessmen walking through a revolving door

Image source: Getty Images.

GameStop is a retailer in transition, heavily weighted by an expansive 4,800 physical store footprint. Activist investors appointed to the board of directors have been put in charge of a new committee designed to oversee the retailer's transformation into an e-commerce-focused business.

Director Ryan Cohen, who has called for GameStop to sell off most of its retail stores and recreate itself into the "Amazon of gaming," will head up the new transformation committee. He is being joined by other activist directors to formulate the strategic plan of attack.

The Wall Street Journal reported last month after Bell's resignation announcement that he was really forced out of his role. There have been no indications given yet that Hamlin was under similar pressure, but the announcement said he is leaving with "good reason," which under his employment contract included such provisions as a cut in pay or a material diminution of his authority, duties, and responsibilities.

GameStop is also hiring personnel from outside the company. It recently appointed a new chief technology officer as well as several former Amazon executives for new e-commerce positions.

Shares of the video game retailer are up more than 900% in 2021, fueled mostly by a Reddit-inspired rally in the stock, but also on the hope Cohen and others can change the trajectory GameStop had been on before.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GameStop Corp. Stock Quote
GameStop Corp.
GME
$95.66 (-3.56%) $-3.53
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$2,151.82 (0.25%) $5.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.