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HomeMarketFunko brings back former CEO, drops CFO after massive drop for stock...

Funko brings back former CEO, drops CFO after massive drop for stock on holiday forecast

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Funko Inc. is putting its longtime chief executive back in charge of the business and looking for new executives to join him after a disappointing holiday forecast chopped the toy maker’s stock in half.

Funko
FNKO,
-1.14%,
known for its line of Pop! figurines that depict characters from popular culture, announced Monday afternoon that Brian Mariotti would return as CEO. Mariotti served as the CEO for years after acquiring the company with other investors in 2005, but had moved to the role of chief creative officer in January of this year in favor of Andrew Perlmutter. In his return, Mariotti “has a mandate from the board to identify operational improvements while continuing to drive profitable growth,” Monday’s announcement reads.

Perlmutter will remain at the company as president, and will also remain on the board of directors. Chief Financial Officer Jennifer Fall Jung will not stay with the company, though: The longtime Gap Inc.
GPS,
+2.02%
employee who was brought in as CFO three years ago is stepping down immediately and being replaced on an interim basis by Scott Yessner, who was found through a search firm.

In addition, Funko is bringing in former Walmart Inc.
WMT,
-1.02%
executive Scott Nave as a consultant to “work full-time alongside the management team to drive strategic and operational execution,” and looking to create a role for a chief operating officer. A search firm has been hired to find prospective CFO and COO candidates, the company said in its announcement Monday.

“The board is taking swift and decisive action to strengthen operations and drive improved results for our stockholders,” chairman Charles Denson said in a statement.

Funko had been riding high on Wall Street, including wooing a star-studded group earlier this year for an investment of more than a quarter-billion dollars. The good times ended last month, however, after executives suggested that holiday revenue will decline from last year and shares plummeted nearly 60% in a single session.

Jesse Jacobs, co-founder of The Chernin Group and a Funko director since leading the investment in the company earlier this year, said in a statement that “the board made these changes to strengthen the Company and deliver value for all Funko stockholders.”

“My colleagues at TCG and I remain confident in the long-term potential of the company,” he added.

Funko shares had grown on a year-to-date basis until that earnings report last month, but now are down 44.7% on the year, compared with a 14.6% decline for the S&P 500 index.
SPX,
-1.79%
Shares gained more than 4% in after-hours trading Monday following the announcement.

Credit: marketwatch.com

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