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Mark King, made chief executive of Xponential Fitness Inc. in June 2024, announced plans to retire as the company’s CEO and chairman due to health reasons on Thursday.
Shares of the fitness studio franchisor (NYSE: XPOF) dropped 16% to $8.22 with a market cap of $399.2 million during midday trading.
“It has been an honor to lead Xponential’s team through a critical and transformative period,” King said in a statement.
He was appointed as CEO last year following the departure of Xponential’s founder Anthony Geisler and the reveal of an investigation by the United States Attorney’s Office (USAO) for the Central District of California.
King will stay on until a successor is found.
“I helped stabilize the company through a focus on franchisee health and creating a customer-centric culture and laid out a strategy for the next phase of growth,” King said. “Additionally, I appointed key executives to build a world-class leadership team to fulfill the vision of becoming the global franchisor of choice in health and wellness.”
“On behalf of the entire Board of Directors, I commend Mark for his contributions and dedication to supporting franchisees and his positive impact on the Company,” Chairman Mark Grabowski added.