GNC Ousts CEO; Replaced by Former PetSmart Exec
Some major changes are happening at GNC. The heath and nutrition products retailer unexpectedly replaced its chief executive and halted its stock buyback program this week, due to weak second-quarter sales and profit. Michael Archbold was hired two years ago to help reverse GNC's downturn, but was unable to deliver. Robert Moran, GNC board member and former chairman and CEO of PetSmart, was named interim CEO "effective immediately." Archbold has also left the company's board.
Total Retail's Take: This news doesn't come as a shock. GNC is in the midst of a strategic review of its operations, including the possibility of selling the company. Recent struggles have included declining sales, investigations by two state attorneys general into improper labeling of ingredients, increased competition from internet retailers and nutrition influencers, and a stock price that has plummeted over 50 percent in one year. Saying GNC has had a rough couple of years is an understatement.