The Planet Fitness Inc (NYSE: PLNT) share price has fallen 17% since the ouster of its CEO on Friday, September 18, triggered a massive decline. The dismissal of the CEO came as a surprise to the markets and even to people close to Chris Rondeau, the ousted EO, who has been responsible for the company’s massive growth in the past six years.
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The company announced that Craig Benson, a former governor of New Hampshire and a member of the company’s board, will serve as its interim CEO. The fitness franchise also confirmed that it was conducting its CEO search internally and externally.
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Given the recent stronger-than-expected second-quarter earnings report released by the firm last month, it was not clear why the outgoing CEO was suddenly dismissed. Some analysts have attributed the recent uncertainty painted by the company about its growth prospects as the primary reason behind the decline.
The decision seemed abrupt, given that the company had cancelled two investor presentations planned during the past week before the CEO’s departure on Friday. Rondeau is a longtime veteran of the company, working his way up from a front desk position nearly 30 years ago at the gym’s first location in Dover, New Hampshire.
Stephen Spinelli, Jr. (Ph.D.), Chairman of the Board, said: “As we enter the next chapter of Planet Fitness' journey, the Board felt that now was the right time to transition leadership. In today's evolving environment, Planet Fitness is continuing to enhance our competitive advantage, capitalize on our size and scale, and drive further shareholder value. As a Board member and Planet Fitness franchisee, Craig knows our business well while bringing deep public and private sector executive leadership experience to this role.
Chris Rondeau said: “My 30-year career at Planet Fitness has been an incredible ride, and it's been an honor to lead this Company and serve our employees, franchisees and members, all of whom have played a key role in our tremendous growth and success. I am grateful for and look forward to supporting the management team in an advisory capacity, and I have confidence in the long-term potential of Planet Fitness.”
The Planet Fitness (PLNT) stock price.
The Planet Fitness (PLNT) stock price fell 17.03% from Thursday’s closing price of $59.83 to its current price of $49.64.
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