Movie Gallery Gets New 'Sherif'12 Jun, 2008 By: Erik Gruenwedel
Movie Gallery Inc.'s recent emergence from bankruptcy protection produced the second major management change when Sherif Mityas was named COO and president of retail operations, effective June 16.
Mityas assumes the vacant COO position and replaces Jeffrey Stubbs, who resigned as president of retail operations, according to a regulatory filing.
The new COO, a former aeronautical engineer, brings 20 years of retail consulting experience, most recently as a partner with A.T. Kearney Inc.
When Dothan, Ala.-based Gallery exited Chapter 11 protection last month, C.J. “Gabe” Gabriel assumed the position of CEO replacing co-founder, chairman and CEO Joe Malugen, who remained a member of the board.
Edward Woo, analyst with Wedbush Morgan Securties in Los Angeles, said it is not uncommon for companies who emerge from bankruptcy to try a new management team. He said with outside investors now running Gallery and old management no longer holding equity in the new company, the switch wasn't surprising.
“I think Gallery realizes they have to do something different since the old movie rental model is, and has been, suffering for a while,” Woo said.