The struggling consumer electronics company, RadioShack Corporation (NYSE:RSH), announced Wednesday that its current CEO, James Gooch, has agreed to step down immediately, and will also resign from the board of directors. The announcement comes at a time when RadioShack is struggling with low margins and vacancies in key executive positions.
“The board decided that the timing was right,” said company spokesman Eric Bruner.”Moving forward with the decision sooner rather than later will help establish the right leadership to address the company’s challenges,” Bruner said.
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To fill in the chair for the time being, Chief Financial Officer Dorvin Lively will serve as the interim CEO, while a permanent replacement is being searched for. The electronics company also revealed that it is in the process of finalizing an executive search firm to help in finding the replacement, and the board will consider both internal and external candidates for the coveted post. Mr. Lively, a finance veteran for retail and consumer-products companies, joined RadioShack Corporation (NYSE:RSH) in August 2011 from Ace Hardware Corp.
Gooch joined RadioShack Corporation (NYSE:RSH) in 2006 as its CFO, and in May 2011 he was appointed CEO as a part of the company’s succession plan to replace Julian Day, who took retirement. Gooch’s prior experience includes a decade with Kmart Holding Corp. and subsequently Sears Holdings Corporation (NASDAQ:SHLD) after the merger with Sears Roebuck & Co.
Just a few months back, RadioShack Corporation (NYSE:RSH) posted an unexpected second-quarter loss and suspended its dividend. It’s not that the company is performing badly, the case is with the entire industry that is struggling with the problems in the brick-and-mortar electronics industry, coupled with the declining popularity of brick-and-mortar electronics stores. The electronics company, along with the retailer Best Buy (NYSE:BBY), is struggling to woo the consumers who are increasingly moving away from devices like computers and cameras, to buy tablets and smartphones, which are less profitable for retailers.
RadioShack Corporation (NYSE:RSH), which has a market value of about $255 million, was removed from the S&P MidCap 400 index this week, as its market capitalization was too small for the category. RadioShack’s stock has tumbled 74 percent since the beginning of the year, after dropping to its lowest of $2.36 in July.