Pedestrians pass a GameStop store on 14th Street in Union Square in the Manhattan neighborhood of New York on Thursday, January 28, 2021.
John Minchillo | AP
GameStop announced Thursday that Chewy’s co-founder Ryan Cohen would become its chairman after the company’s annual general meeting slated for June 9.
The retailer’s shares rose more than 4% in premarket trading, setting the stock on track to spark a three-day losing streak. The stocks have given up some of their sky-high gains since spiking in late January, but are still up more than 870% this year, giving the company a market value of $ 12.8 billion.
Cohen invested in GameStop last year to encourage the video game retailer to focus on online sales and close unprofitable stores in malls. His commitment to the company helped spark the stock’s wild ride earlier this year.
Cohen is also the manager of activist investor RC Ventures.
Kathy Vrabeck is currently the CEO of GameStop.
The transition is part of a broader management reorganization at GameStop, which is trying to turn its business around.
It recently recruited several executives from Amazon, Walmart, QVC, and Chewy for top positions. Chris Homeister, chief merchandising officer, filed his resignation from the business in late March. And in February, CFO Jim Bell announced his resignation as the company sought a successor with a more e-commerce background.
GameStop announced in a securities filing on Thursday that other new board nominees include Larry Cheng, the first investor in Chewy, and Yang Xu, an executive at Kraft Heinz.
Current board members Alan Attal and CEO George Sherman will also be nominated.