Two weeks after announcing an ambitious plan to marry content and commerce, SurfStitch CEO and Co-Founder Justin Cameron has resigned as CEO, the company announced today.
Cameron is expected to partner with a private equity firm to make a bid for buying SurfStitch, which has only been publicly traded since December 2014. However, the company said today that no bid has been received yet.
SurfStitch owns Swell, Surf Hardware, Stab, and other industry companies.
After the company announced its ambitious content strategy and declined to provide earnings guidance on its most recent earnings conference call in February, its stock price slid.
The plan calls for creating a subscription model à la Amazon Prime and Netflix. It also calls for rebranding all of its current e-commerce platforms to the Swell banner, and then leveraging its ownership of Stab, Magicseaweed and Garage Entertainment Production to produce short and long form content, and enriched social media and athlete engagement to drive e-commerce sales. SurfStich discussed its strategy on an earnings conference call two weeks ago.
The founders of Stab and Magicseaweed are relocating to Southern California to build up a content structure.
SurfStitch is aiming to reach $1 billion in sales in five years.
While the company has talked a lot about creating a compelling brand experience online, SurfStitch and Swell have raised the ire of retailers and some brands because of their continual discounting of industry products. Â
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