Struggling RadioShack says CEO will step down

Posted Wednesday, Sep. 26, 2012  comments  Print Reprints
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FORT WORTH -- Struggling consumer electronics retailer RadioShack announced Wednesday morning that chief executive Jim Gooch is stepping down "effective immediately."

RadioShack said its board of directors and Gooch "have agreed" on the move.

"The board of directors is in the process of retaining an executive search firm to assist in conducting a search for a successor," RadioShack said. "The board does not intend to place any limitations on the search, which may include internal candidates."

The company’s chief financial officer, Dorvin Lively, will be interim CEO.

"We thank Jim for his service to the company and wish him well in his future endeavors," RadioShack Chairman Dan Feehan said in a release.

"I would like to thank my colleagues on the Board and everyone at the Company for their strong support," Gooch said. "I wish them all great success in the future."

RadioShack has continued to struggle during Gooch's short tenure as CEO. The company promoted him to the post in early 2011 from chief financial officer.

The company's strategy to focus on wireless hasn't taken hold. Profits sagged during the shift to the lower-margin products and services, and consumers have been slow to become aware to RadioShack's offerings.

In July, RadioShack posted an unexpected second-quarter loss and suspended its dividend.

The chain's troubles are partly because of wider problems in the brick-and-mortar electronics industry and add fuel to the notion that selling consumer electronics in brick-and-mortar stores is becoming less and less viable.

Major credit rating agencies downgraded RadioShack earlier this year.

The stock has been hit hard. Since the beginning of the year, its shares are down 74 percent. The stock dropped to an all-time low of $2.36 in July. It closed at $2.56 on Tuesday, but gained 8 cents to $2.64 in pre-market trading Wednesday.

RadioShack hired Lively in August last year. Lively was chief financial officer of Ace Hardware, taking that post in March 2008.

This report contains material from The Associated Press.

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