Sherman replaces Shane Kim, who’s served as interim CEO since May 2018. Shane, a former Xbox executive, took over the role after Michael Mauler resigned after just three months on the job. He reportedly left for “personal reasons.” He worked at GameStop for more than 16 years before taking on the role of CEO.
Previously, Sherman served as CEO of Victra, one of the largest authorized retailers for Verizon Wireless in the U.S. He also spent three years as president of Advance Auto Parts and had a short stint as its interim CEO. During his tenure there, he helped merge and integrate General Parts International following its acquisition in 2014. Sherman also had leadership roles at Best Buy and Home Depot.
Despite being the largest brick-and-mortar video game retailer in the U.S., GameStop has been struggling financially due, in part, to the growth of digital games distribution and online retailers like Amazon. It just saw a 5% drop in global holiday sales compared to the same nine-week holiday period in 2017. It also recently sold its Spring Mobile business for $700 million and will use the proceeds to reduce its outstanding debt, repurchase shares, and reinvest in its core gaming and collectibles business.
GameStop sought a potential buyout with private firms last year, but ended its efforts in January after failing to secure a deal, sending its shares tumbling more than 27%. It blamed a “lack of available financing on terms that would be commercially acceptable to a prospective acquirer.”