UPDATE 2-Coldwater Creek CEO quits, chairman named new CEO

* Says Daniel Griesemer quits as CEO

* Says Dennis Pence new CEO, effective immediately

* Shares fall 8 pct (Adds background, analyst comments, updates share movement)

By Abhishek Takle

BANGALORE, Sept 14 (Reuters) - Women's apparel retailer Coldwater Creek Inc (CWTR.O) said Chief Executive Daniel Griesemer has resigned and brought back co-founder and Chairman Dennis Pence as chief executive effective immediately.

Shares of the company fell as much as 8 percent Monday morning on Nasdaq but pared some losses and were down 3 percent at $7.11 later in the session.

Pence served as chief executive of Coldwater Creek from 1984 to 2000 and from 2002 to October 2007, the company said in a statement.

"It seems they just weren't really pleased with the speed of the recovery and I think the chairman now wants to be more involved with the business," JP Morgan analyst Christopher Kim said by phone.

When asked if Pence was appointed to the role as he could do a better job of turning Coldwater -- which sells apparel to women 35 years and older -- around, Kim replied: "That's essentially it."