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(Reuters) - U.S. consumer electronics chain RadioShack Corp RSH.N said Chief Executive James Gooch will step down effective immediately, as the company seeks to revive its flagging fortunes.
"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.
The change comes at a time when RadioShack is struggling with low margins and vacancies in key executive positions.
The company reported an unexpected loss for the second quarter and suspended its dividend to help pay down debt.
RadioShack, has been increasingly focusing on selling more phone calling plans and smartphones, particularly the Apple Inc (AAPL.O) iPhone, which has eaten into margins.
The company, which has a market value of about $255 million, was bumped off the S&P MidCap 400 index this week as its market capitalization was too small for it to be included in the S&P 1500.
RadioShack said its board was conducting a search for a successor and would not rule out internal candidates.
Executive Vice President and Chief Financial Officer Dorvin Lively will be the acting CEO.
Gooch joined RadioShack as CFO in 2006 and became CEO in May 2011.
RadioShack's stock, which closed at $2.56 on Tuesday, was little changed in premarket trading on the New York Stock Exchange. The shares have lost nearly three-quarters of their value this year.
Reporting by Juhi Arora and Arpita Mukherjee in Bangalore; Editing by Joyjeet Das and Ted Kerr