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In an abrupt turn in leadership, Funko Chief Executive Officer Cynthia Williams exited her role on Saturday. Williams joined the company in May 2024 from Hasbro, where she was the president of Wizards of the Coast and Gaming.
Funko appointed Michael Lunsford as interim CEO, effective the same day of Williams’ departure, according to a press release. “I believe we have yet to achieve the full potential of Funko,” Lunsford said in a statement.
The decision was made by the board of directors, a company spokesperson said in an email to Retail Dive.
“The Board determined that the company needs new leadership to accelerate growth,” the spokesperson said.
Lunsford was previously Funko’s interim chief between 2023 and 2024, following then-CEO Brian Mariotti taking a leave of absence and subsequently stepping down from the chief executive position.
“We believe a change in leadership is necessary to deliver full shareholder value and believe Mike’s appointment positions us accordingly,” Board Chairman Charles Denson said in a statement. “Mike is experienced in leading several companies, including Funko, through successful corporate transitions. The Board has asked Mike to help us realize the full potential of the business, including helping to identify a new chief executive officer, accelerating our organic growth, and exploring all financial and strategic options for the business.”
In the company’s Q1 earnings, net sales fell 11.6% year over year to $190.7 million, and net loss widened to $28 million, compared to $23.6 million in the year-ago quarter.
“Our strategic direction remains consistent,” the company spokesperson said regarding the change in top leadership. “The focus now is on moving with greater urgency to execute the plans we’ve set to grow the business and sharpening operational discipline to strengthen the business.”