Planet Fitness stock nosedives 15% as board FIRES longtime CEO Chris Rondeau in shock move
Planet Fitness shares fall 15% after Chris Rondeau, former CEO of FIRES board, is shocked
- The Planet Fitness board announced the resignation of CEO Chris Rondeau on Friday morning
- Rondeau led the gym chain for a decade after starting as a receptionist in 1993
- His firing was a mysterious move that sent the company’s stock into a nosedive
Chris Rondeau, CEO of Planet Fitness, has been abruptly fired by the company’s board of directors, in a mysterious move that sent the company’s stock into a nosedive.
The company announced the move in a statement Thursday morning, saying board member Craig R. Benson, the former Republican governor of New Hampshire, would immediately take over as interim CEO.
The statement offered little explanation for this move, saying only that Rondeau was not fired as “the result of material or unexpected financial events.”
Planet Fitness, a budget gym chain, has more than 2,400 locations around the world, known for their purple color schemes and signage indicating a “judgment-free zone.”
Rondeau had served as CEO since 2013, after working his way up from a receptionist at the company’s first location in Dover, New Hampshire, where he started working in 1993.
Planet Fitness CEO Chris Rondeau has been abruptly fired by the company’s board of directors, in a mysterious move that sent the company’s stock into a nosedive
The company’s shares fell as much as 15 percent on Friday morning, trading as low as $50.21, the lowest since the pandemic began in March 2020.
Last year, Rondeau’s compensation package totaled $5.6 million, compared to $9.3 million in 2021, according to public disclosures.
A Planet Fitness spokesperson did not immediately respond to a request for more information about Rondeau’s dismissal.
Board member Craig R. Benson, the former Republican governor of New Hampshire, will immediately take over as interim CEO
The company’s shares fell as much as 15 percent on Friday morning, trading as low as $50.21, the lowest since the pandemic began in March 2020.
In a statement, Planet Fitness Board Chairman Stephen Spinelli Jr. said, “As we enter the next chapter of Planet Fitness’ journey, the board felt this was the right time to transition leadership.”
Rondeau also released a statement saying, “My 30-year career at Planet Fitness has been an incredible ride, and it has been an honor to lead this company and serve our employees, franchisees and members, all of whom play a key role have played in our company. enormous growth and success.
“I am grateful for and look forward to supporting the management team in an advisory role and am confident in the long-term potential of Planet Fitness.”
Planet Fitness says it has retained an executive leadership search firm to assist in the hunt for a new permanent CEO, and will consider both internal and external candidates.
Planet Fitness, a budget gym chain, has more than 2,400 locations around the world, known for their purple color schemes and signage proclaiming a ‘judgment-free zone’
The company’s shares have fallen about 34 percent since the beginning of this year.
“While PLNT (Planet Fitness) experienced significant growth during Rondeau’s tenure as CEO, the transition announcement follows a more recent period of underperforming stock performance, driven primarily by lower-than-expected franchise store growth,” said RBC analyst Christopher Carril in a note.
In August, the company reported that second-quarter revenue rose nearly 28 percent to $286.5 million, while net profit nearly doubled to $44.2 million.
“Despite this leadership adjustment, we do not expect any change in the company’s strategy,” Jefferies analysts led by Randal Konik said in an investor note.