Shares of Planet Fitness (PLNT) dropped 16%, to their lowest level in more than three years after the gym operator’s board unexpectedly fired CEO Chris Rondeau.
- Planet Fitness shares sank after the gym operator fired CEO Chris Rondeau, who held the position since 2013.
- In its statement, Planet Fitness didn't give a reason why Rondeau was being let go. He'll remain on the board.
- Board member and former New Hampshire governor Craig Benson will serve as interim CEO.
The company announced that board member Craig Benson has been chosen as interim CEO, effective immediately. It added that Rondeau would remain on the board and will be nominated for reelection at the 2024 annual meeting.
He is expected to serve in an advisory role “to help ensure a smooth transition.” Planet Fitness noted it has brought in an executive search firm to find a permanent replacement, and both internal and external candidates will be considered.
Rondeau has worked at Planet Fitness for three decades and served as CEO since 2013. It’s not clear why he was let go. The company indicated that the change was “not the result of any material or unexpected financial events.”
“As we enter the next chapter of Planet Fitness’ journey, the Board felt that now was the right time to transition leadership," said Chair Stephen Spinelli, Jr.
Benson was the governor of New Hampshire from 2003 to 2005 and co-founded networking equipment maker Cabletron Systems 40 years ago. He has been on the Planet Fitness board since 2017.