Chris Rondeau, CEO of Planet Fitness
Adam Jeffery | CNBC
In a surprising move that shocked both investors and employees, workout chain Planet Fitness announced on Friday that it had removed its long-time CEO, Chris Rondeau, from his position, according to a press release.
The stock plummeted 15% following the announcement, reaching a 52-week low.
Planet Fitness stated that it is currently searching for its next chief executive officer, both internally and externally. In the meantime, board member Craig Benson will serve as the interim CEO.
Rondeau’s departure seems sudden, and the reasons behind the decision are not clear, particularly after the company’s stronger-than-expected earnings report in the second quarter of this year. According to an insider, some staff members close to Rondeau were taken by surprise when they found out about his departure at the same time as the public announcement.
Rondeau has been with the company for many years, serving as CEO since 2013. He will remain a member of the board of directors and be nominated for re-election in 2024. Additionally, Rondeau will provide advisory support during the transitional period.
Prior to becoming CEO, Rondeau held the position of operating chief for the company. His journey with Planet Fitness began in 1993 when he worked at the front desk of the chain’s first location in Dover, New Hampshire, which was owned by founders Michael and Marc Grondahl. Since its establishment in 1992, the chain has expanded to over 2,400 locations.
“As we embark on the next phase of Planet Fitness’ journey, the Board determined that now was the appropriate time for a change in leadership,” stated Planet Fitness Chairman Stephen Spinelli Jr. in the press release. “In today’s evolving landscape, Planet Fitness continues to strengthen our competitive edge, leverage our size and reach, and generate further value for our shareholders.”
The company’s stock has experienced a 34% decline this year, resulting in a market value of approximately $4.47 billion.
