FlexShopper Inc (NASDAQ:FPAY) shares dropped 20% in premarket trading on Thursday after the company announced the resignation of several top executives, including three board members and the President and Chief Operating Officer.
Director Steven G. Varner stepped down on September 29, citing disagreements over the company’s financial management and claiming he was not provided certain information promptly. The company rejected Varner’s assertions, stating that all requested information had been delivered.
President and COO John Davis left on September 26, while directors Thomas O. Katz and Patrick L. McCrory resigned on September 29 and September 26, respectively. The company emphasized that these departures were not related to disagreements with FlexShopper’s operations, policies, or practices.
H.C. Wainwright analyst Scott Buck cut his price target for FlexShopper to $0.50 from $2.50, while maintaining a Buy rating.
“These resignations follow the termination of Chief Executive Officer Russ Heiser in August 2025. Following this announcement in August, the company engaged North Country Capital LLC for interim management and restructuring advisory services, including the appointment of a chief restructuring officer. In addition, the company indicated it has received a Notice of Default, Acceleration of Obligations and Termination of Servicer. This brings approximately $164.5M of principal amount outstanding under the current agreement due immediately as well as additional interest and fees totaling approximately $3.5M,” Buck commented.
The wave of departures comes amid apparent financial strain, as the company faces accelerated debt obligations and has brought in restructuring advisors to navigate the situation.
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