Planet Fitness stock nosedives 15% as board FIRES longtime CEO Chris Rondeau in shock move
- Planet Fitness board announced CEO Chris Rondeau’s ouster on Friday morning
- Rondeau led the gym chain for a decade, after starting as a desk clerk in 1993
- His firing was a mystery move that sent the company’s stock into nosedive
Planet Fitness CEO Chris Rondeau has been abruptly fired by the company’s board of directors, in a mystery move that sent the company’s shares into 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 take over immediately as interim CEO.
The statement offered little explanation for the move, saying only that Rondeau had not been fired as ‘the result of any material or unexpected financial events.’
Planet Fitness, a low-cost gym chain, has more than 2,400 locations around the world, known for their purple color schemes and signage declaring a ‘judgement free zone.’
Rondeau had served as CEO since 2013, after working his way up from front desk clerk 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 mystery move that sent the company’s shares into nosedive
Shares of the company dropped as much as 15 percent on Friday morning and traded as low as $50.21, their lowest since the onset of the pandemic in March 2020
Last year, Rondeau’s compensation package totaled $5.6 million, down from $9.3 million in 2021, according to public disclosures.
A spokesperson for Planet Fitness 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 take over immediately as interim CEO
Shares of the company dropped as much as 15 percent on Friday morning and traded as low as $50.21, their lowest since the onset of the pandemic in March 2020.
In a statement, Planet Fitness board chair Stephen Spinelli Jr said: ‘As we enter the next chapter of Planet Fitness’ journey, the Board felt that now was the right time to transition leadership.’
Rondeau also issued a statement saying: ‘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 have confidence in the long-term potential of Planet Fitness.’
Planet Fitness says it has engaged an executive leadership search firm to help in the hunt for a new permanent CEO, and will consider both internal and external candidates.
Planet Fitness, a low-cost gym chain, has more than 2,400 locations around the world, known for their purple color schemes and signage declaring a ‘judgement free zone’
The company’s stock is down about 34 percent since the start of this year.
‘While PLNT (Planet Fitness) saw significant growth during Rondeau’s tenure as CEO, the transition announcement follows a more recent period of stock underperformance driven primarily by lower-than-expected franchise store growth,’ said RBC analyst Christopher Carril in a note.
In August, the company reported that its revenue rose by nearly 28 percent to $286.5 million in the second quarter while net income nearly doubled to $44.2 million.
‘Despite this leadership adjustment, we wouldn’t expect any change in the company’s strategy near team,’ said Jefferies analysts led by Randal Konik in an investor note.