Groupon Replaces Top Executives After Turnaround Plan Falters

(Bloomberg) -- Groupon Inc. removed its chief executive officer and chief operating officer, replacing them with an interim CEO, as the online discount provider struggles to pull out of a slump worsened by the coronavirus pandemic.

Aaron Cooper, Groupon’s North American president, will be the interim leader while the board searches for a permanent CEO, the company said on Wednesday. The previous CEO, Rich Williams, and the operating chief, Steve Krenzer, will remain employees of the company.

Groupon offers discounts to local businesses, such as nail salons, escape rooms and restaurants, many of which have had to scale back services during lockdowns across the U.S. But even before the outbreak, Groupon was ailing. Last month, the company sent its stock plunging with worse-than-expected results and said it would be shutting down a division that sells merchandise.

“Our immediate goal is to help millions of Groupon merchants, customers and employees navigate the massive challenges they face,” Cooper, a 10-year Groupon veteran, said in a statement. “We have a strong team in place that is in constant communication with our community, working on opportunities to support them in new ways during these uncertain times, even as we continue to focus on strengthening Groupon’s leadership position.”

As of last month, Williams was still upbeat about the company’s comeback plan. He was working to shift away from offering deals and position Groupon as a marketplace where consumers can find local experiences. But offering experiences is an even harder sell during a pandemic.

Groupon shares are down 63% this year, compared with a 23% decline for the S&P 500.

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