Funko's board of directors has pulled the plug on the short tenure of CEO Cynthia Williams, replacing her with Michael Lunsford as interim CEO, the company announced.  Lunsford previously served as interim CEO beginning in July of 2023, when he took over from longtime CEO Brian Mariotti (see "Funko CEO Out"), until Williams was hired from Wizards of the Coast in May of 2024 (see "WotC Prez to Funko").  Lunsford remained a board member after his departure as interim CEO.

Funko has been scrambling to deal with the impact of tariffs, downsizing its workforce, shifting sources of supply, raising prices, and looking for capital.  The company included a "going concern" statement with its most recent 10-Q filing, indicating that it was about to fall out of compliance its lender covenants (see "Funko Scrambling").  Funko lost $27.6 million in Q1 behind a 16.7% decline in U.S. sales; it lost $14.7 million for full year 2024.

"We believe a change in leadership is necessary to deliver full shareholder value and believe Mike's appointment positions us accordingly,” Board Chairman Charles Denson said in making the announcement.  "Mike is experienced in leading several companies, including Funko, through successful corporate transitions.  The Board has asked Mike to help us realize the full potential of the business, including helping to identify a new chief executive officer, accelerating our organic growth, and exploring all financial and strategic options for the business."  Denson also thanked Williams for her time at Funko.

Lunsford gave a nod to the company's difficult position.  "The recent changes to the global business environment have constrained our growth initiatives, and we intend to first address those challenges but always with an eye towards the long-term growth of the business," he said in a statement accompanying the announcement.