CEO Departs Sears Holdings Corp (NASDAQ:SHLD) – Should Investors Worry?
In an unexpected move, Calvin MacDonald, Sears Holdings Corp (NASDAQ:SHLD)’ Sears Canada Chief Executive Officer is exiting the company 2 years after being at the fore of trying to transition the company to the path of profitability. This has definitely raised many eyebrows and even more doubts about whether the struggling retailer will be able to hold its own in the space that is becoming increasingly competitive.
On Tuesday,Sears Holdings Corp (NASDAQ:SHLD) announced that McDonald will be leaving the company as he had a new opportunity on hand and that he will be assuming a top position in another company. People in the know have stated that this exit was a result of some opposing views that MacDonald had with Sears Holdings Corp (NASDAQ:SHLD), the parent company’s controlling shareholder, Edward Lampert. The disagreement apparently stemmed from the speed at which capital as being channelized to keep the transformation running in the direction it should
The former COO at Sears Holdings Corp (NASDAQ:SHLD) who had joined the company in March 2011, Douglas Campbell has replaced MacDonald as the CEO, with effect from Tuesday. The timing of MacDonald’s departure could not have come at a worse time. Competition in the market has heated up with the appearance of rivals Walmart Canada and Target Corp.
In Wednesday’s trading session, Sears Holdings Corp (NASDAQ:SHLD) stock rose by 3.19%. The shares opened at a price of $57.95, climbed to an intraday high of $60.03 and headed to a close of $59.72. Approximately 1.09 million shares were traded on Wednesday and an average volume of 1.51 million shares were traded over a period of 30 days. The 52-week low of the shares was $38.40 and the 52-week high was $68.77. Sears Holdings Corp (NASDAQ:SHLD) has a market capitalization of $6.36 billion.