A big surprise came on April 13 when online personal styling service Stitch Fix (NASDAQ: SFIX) announced that founder Katrina Lake will step down as CEO and move to the role of executive chairperson of the board. Current Stitch Fix president Elizabeth Spaulding is taking over from Lake and will lead the day-to-day operations at the company.
This news came as a surprise to Stitch Fix investors since there were no indications that Lake would step down from the position she has held since starting the company in 2011. With the founder gone, some investors might consider selling their shares in Stitch Fix. Here’s why that’s not a smart move.