If this internet rumor is true and the Craigslist link not some sort of elaborate prank, it's a big deal for the company. John Sander was there since 2007 or so. The CL listing contains some suggestive items as well for tea leaf readers.
Tweet: "Did John Sanders get fired...? http://sfbay.craigslist.org/sfc/mar/3710354781.html"
and
reply: "Nope, left."
Interesting to note that "essential job functions" for his replacement includes "New initiatives to grow the business; including
entry into adult toy sales". Currently they are flogging a Kink-branded whitelabel store powered by Extreme Restraints, but it sounds like they plan to get more ambitious there.