RadioShack Corporation (NYSE:RSH) announced that its chief financial officer, John Feray resigned due to personal reasons on September 12, 2014.
The stock price of the company is up by more than 13% to $1.03 per share at the time of this writing around 12:19 in the afternoon in New York.
RadioShack names interim CFO
The board of directors of the electronics retailer appointed Holly Etlin as interim CFO. According to RadioShack Corporation (NYSE:RSH), Etlin is a longtime advisor of the company and previously served as interim CFO from July 12013 to February 2014. She serves as managing director at AlixPartners, LLP.
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The 8K filing of RadioShack Corporation (NYSE:RSH) with the Securities and Exchange Commission (SEC) indicated that AP Services, LL, an affiliated of AlixPartners provides consulting services to the company. The appointment of Etlin as interim CFO is part of the company consulting arrangement with AP Services.
RadioShack Corporation (NYSE:RSH) said Etlin’s services as interim CFO are billed by AP Services, and she is not separately compensated by the company.
Quarterly financial performance
Last week RadioShack Corporation (NYSE:RSH) released its second-quarter financial results and indicated that it is in the process of pursuing a comprehensive recapitalization option.
During the quarter, RadioShack Corporation posted $673.8 million in revenue, down from $861.4 million last year. Its comparable store sales declined 20% due to traffic declines and weak performance of its mobility business.
The electronics retailer said incurred $137 million losses from continuing operations or $1.35 losses per diluted share.
RadioShack CEO Joseph Magnacca emphasized that they had been working hard on the company’s turnaround plan. According to him, the company may need additional capital, and they are in advanced discussions with a number of parties.
“We are also working with our key financial stakeholders, including our existing lenders, bondholders, shareholders and landlords seeking to create a long-term solution,” said Magnacca.
According to him, such long-term solutions may include debt restructuring, store base consolidation program and other measures to reduce the company’s cost structure significantly.
“Our entire team is focused on executing our vision, adapting to the environment, managing our balance sheet, and driving sustainable change,” said Magnacca.
Earlier this month, Wedbush analyst Michael Pachter said bankruptcy reorganization was imminent for RadioShack Corporation (NYSE:RSH), and the stock price of the company is worth $0.