The former CEO has returned to the role and Funko’s CFO has stepped down after stock falls due to disappointing forecast.
Funko has decided to reinstate longtime chief executive, Brian Mariotti, to lead the business and is also looking to take on new senior executives after a disappointing holiday forecast caused a reduction in the company’s stock value of over half.
The company’s stock fell nearly 60% in a single session after the board warned that revenue might decline in Q4 this year. Funko is now looking for a new CFO and has said it will create a COO position to support the return of Brain Mariotti.
The return of the former CEO was announced this week. Brian had served as Funko CEO for many years after acquiring the company with other investors in 2005, but moved to the role of chief creative officer in January of this year, when Andrew Perlmutter took over.
The announcement said that he now “has a mandate from the board to identify operational improvements while continuing to drive profitable growth”.
Andrew Perlmutter will remain at the company as president, and will also remain on the board of directors. However, chief financial officer, Jennifer Fall Jung, is set to depart Funko with immediate effect, to be replaced on an interim basis by Scott Yessner. Jennifer has been in the role for three years.
In a move to shore up the company’s fortunes, former Walmart executive Scott Nave will join Funko as a consultant to “work full-time alongside the management team to drive strategic and operational execution”. The business will also create a role for a chief operating officer, and a search for candidates for both the COO and CFO positions is underway.
“The board is taking swift and decisive action to strengthen operations and drive improved results for our stockholders,” commented chairman Charles Denson.
Funko had been reporting strong financials earlier this year and had recently attracted investment of more than a quarter-billion dollars. 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.”