Former Dell executive named to lead RadioShack

A former executive with Dell and Motorola has been chosen to lead RadioShack in its new life under parent Standard General.

Ron Garriques was introduced to employees, franchisees and landlords on a conference call Thursday afternoon, two days after a bankruptcy judge approved the sale of 1,743 stores to the New York hedge fund.

Making the announcement, Soo Kim, managing partner of Standard General, said the slimmed-down Fort Worth-based consumer electronics retailer is positioned for a bright future after shedding debt in bankruptcy and striking a deal with Sprint to sell wireless products in its stores.

“We plan to prove the skeptics and the people who wanted to shut this company down wrong,” Kim said. “We are committing the resources needed for the long haul.”

He told employees that they “can rest assured that your jobs are by and large secure as we believe the company is now poised to thrive.”

In brief remarks, Garriques said he has worked in the consumer electronics and mobile technology business for nearly 30 years and is confident the company has the right pieces in place to succeed.

Garriques will replace Joseph Magnacca, who resigned Wednesday after two years as CEO. During his tenure, Magnacca launched concept stores and revamped the merchandise mix but was unable to stem growing losses and sales declines amid dwindling finances.

Kim said about 1,400 stores will be co-branded with Sprint, with the wireless carrier operating shops that take up about a third of the space.

“I cannot overstate how attractive it is to have Sprint on board,” Kim said, adding that it will draw customers and “contribute to the bottom line from Day One.”

RadioShack, he said, will streamline its inventory and focus on developing high-value, private-label products.

Standard General became a major shareholder in RadioShack last year and arranged a rescue financing package last fall to help the company get through the holidays. It announced its intention to bid for the stores and the agreement with Sprint when RadioShack filed for bankruptcy in February.

Kim said that his firm specializes in helping troubled companies succeed and that he has a special fondness for RadioShack.

“As a kid growing up in Queens, N.Y., I always loved technology and enjoy many memories going to my neighborhood RadioShack store,” he said.

This story was originally published April 2, 2015 at 8:55 PM with the headline "Former Dell executive named to lead RadioShack."