The GameStop store is pictured in New York City on January 29, 2021.
Carlo AllegriI | Reuters
Shares of GameStop rose more than 100 percent on Wednesday as investors flocked to the retailer amid the C-suite shake.
The shares were suspended for less than 30 minutes on the trading day and the shares ended the day with 1
GameStop announced on Tuesday that Chief Financial Officer Jim Bell will resign on March 26.
“Mr. Bell’s resignation was not due to disagreement with the Company on any matter related to the Company’s operations, policies or practices, including accounting principles and practices,” the company said in a statement to the Securities and Exchange Commission.
Sources familiar with the matter told Business Insider that Bell did not leave willingly, but was pushed out by Ryan Cohen, co-founder of Chewy, who invested in GameStop last year in an attempt to help the company accelerate its pressure online.
Bloomberg News reported Tuesday night that the GameStop board has pushed Bell to make its turn faster, according to sources familiar with the matter.
Cohen’s appointment to the GameStop board helped boost sharply shortened stocks in January, leading to an epic short contraction for the GameStop that sparked a retail craze and ultimately attention from Congress.
“We recognize that change of leadership often follows the settlement of activists and Mr Bell’s exit is reciprocal, not immediate and does not imply any disagreement with the company / board,” said Jefferies stock analyst Stephanie Visink. “Bell deserves recognition for a series of actions that protected GME’s capital in the late stages of the last hardware cycle, when sales fell sharply.”
Jefferies added that GameStop is likely to look for a deputy CFO with technology, compared to the retail background.
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