GameStop CEO steps down after three months in role

(Reuters)

GameStop announced on Friday that CEO Michael Mauler has resigned just three months after taking the helm of the struggling video game retailer.

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The Grapevine, Texas, company named one of its co-founders, Daniel DeMatteo, as interim chief executive, effective immediately. DeMatteo also serves as GameStop’s executive chairman and a director on the board.

Mauler stepped down for personal reasons, GameStop said.

“Given my tenure and familiarity with the company and our associates, it’s a natural step for me to assume this role and guide the business at this time while the board searches for a permanent CEO,” DeMatteo said in a statement.

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Mauler will receive 23,324 shares of restricted stock, worth about $293,000 on Friday, and accumulated dividends in accord with GameStop’s retirement policy, according to a company filing with the SEC. He won’t receive severance or other separation benefits following his short tenure as CEO.

Mauler took over in February after CEO Paul Raines stepped down for health reasons after about seven years in the role. Raines died in March at age 53.

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GMEGAMESTOP CORP4.32+0.12+2.86%

GameStop, the largest independent video game retailer, has sought to turn its business around after struggling as downloadable games became more popular. The company has focused on expanding its e-commerce presence and diversifying its product offerings. In 2016, GameStop purchased hundreds of AT&T wireless stores.

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