GameStop Names Interim CEO While Paul Raines Recovers From Illness
GameStop has appointed an interim CEO, the company announced yesterday. CEO Paul Raines has had "a medical reoccurrence." The Dallas Morning News reports the board of the video game retailer appointed Daniel DeMatteo, GameStop's executive chairman, to be interim CEO. DeMatteo, one of GameStop's co-founders, will continue to serve as executive chairman and director, the company said in a statement. In 2014, Raines had a brain tumor removed with a good prognosis, GameStop said at the time. Doctors successfully removed a "very small, cancerous tumor" in an easily accessible part of the brain.
Total Retail's Take: DeMatteo takes over at a challenging time for GameStop. The company is facing declining sales as more video games are being downloaded than bought in physical stores. GameStop has closed stores this year, and recently launched a game rental subscription service to help turn around its fortunes. But for the time being, DeMatteo is concerned with Raines returning to health and coming back to lead GameStop. "We continue to send our best wishes and strong support to Paul and his family. The board of directors has tremendous confidence in GameStop's executives and the management team's ability to effectively run the business with the board's support."