Shares of Indigo Books & Music (IDG) rose 11% on news that nearly half of the retailer’s board of directors, including executive chair Heather Reisman, have resigned their positions.
Reisman, who founded Indigo in 1996, said she will retire this summer.
Four other board members also announced that they are severing ties with the company, including Dr. Chika Stacy Oriuwa, Frank Clegg, Howard Grosfield, and Anne Marie O'Donovan.
Oriuwa, who had served on Indigo’s board since 2020, said she was stepping down “because of mistreatment,” though no further explanation was provided.
The resignations had all taken effect when the statement announcing their departures was released to the public.
Indigo has been struggling since the Covid-19 pandemic forced its retail locations to close or operate at reduced capacity. In February of this year, the company was hit by a cyberattack that compromised current and former employees' personal information.
Indigo said Heather Reisman will officially retire as executive chair of the board on August 22. Her departure comes after she stepped down as chief executive officer (CEO) last year.
Indigo’s share price has declined 38% in the last 12 months to trade at $2.17, making it a penny stock.
Since Indigo’s initial public offering (IPO) in 1997, the company’s stock has lost 85% of its value.
