RadioShack CEO steps down as company tries to hasten revival

Wed Sep 26, 2012 10:51am EDT
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By Arpita Mukherjee and Juhi Arora

(Reuters) - U.S. consumer electronics chain RadioShack Corp RSH.N said Chief Executive James Gooch stepped down, as the once-iconic retailer seeks to revive its flagging fortunes after a series of strategic setbacks.

"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."

RadioShack's shares, which have fallen more than 80 percent since Gooch took over last May, were up 0.8 percent at $2.58 in morning trading on Wednesday.

RadioShack, famous in the vacuum tube era as a hangout for radio and electronics enthusiasts, has been increasingly focusing on selling low-margin phone calling plans and smartphones, particularly the Apple Inc (AAPL.O: Quote) iPhone.

The company, whose joint venture with Target Corp (TGT.N: Quote) has fallen short of expectations, is also facing increasing competition from online retailers such as Inc (AMZN.O: Quote).

RadioShack reported an unexpected net loss $21 million for the second quarter and suspended its dividend to help pay down debt.

RadioShack's total debt stood at about $680 million as of June 30.   Continued...