RadioShack CEO Gooch Steps Down

James Gooch and Dorvin Lively (Radio Shack)FORT WORTH, Texas (AP) - RadioShack (RSH) CEO James Gooch has agreed to step down immediately and is leaving its board of directors, the struggling consumer electronics company said Wednesday.

Chief Financial Officer Dorvin Lively will serve as its interim CEO while it looks for a permanent replacement, the company said.

RadioShack Corp. said that it is in the process of hiring an executive search firm to help find a new CEO and that it may consider both internal and external candidates. Gooch became its CEO in May 2011 as part of the company's succession plan. Gooch, who joined RadioShack in 2006 as its CFO, took over as CEO when Julian Day retired.

In July, RadioShack posted an unexpected second-quarter loss and suspended its dividend. The chain's troubles are partly due to 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.

Radio Shack

RadioShack and Best Buy Co. are dealing with shoppers who are increasingly moving away from devices like computers and cameras to buy tablets and smartphones, which are less profitable for retailers.

RadioShack's 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 premarket trading Wednesday.

The company said in announcing Gooch's departure that its board and Gooch "have agreed" that he would step down as both CEO and the board.

"We thank Jim for his service to the company and wish him well in his future endeavors," Chairman Daniel Feehan said in the statement.

Gooch was quoted in the same news release as thanking his fellow board members and "everyone at the company for their strong support" and wished them "great success in the future."

RadioShack, which is based in Fort Worth, Texas, has about 4,700 company-run stores in the U.S. and Mexico. It has approximately 1,500 U.S. wireless phone centers and about 1,100 dealer and other outlets worldwide.




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jjmtprospect

Both Gooch and Day were jackasses, which only makes me wonder about the BOD. Yes I worked at RS for 28 years, and was "let go" for a bad report in selling "revenue drivers". I don't miss it one iota. The stores have turned into "Cell Phone Shack". I hold a degree in Electronics Technology, and was another one of those who actually enjoyed advising my customers with technical electronics issues (mobile phones are NOT technical issues). The last time I went into a RS, there were 3 women there that didn't know what a mike clip was. I said never mind, I know what I'm looking for (I even knew the stock #). Seems RS's grand plan was to weed out all the older, more technically knowledgeable associates that actually gave RS some credibility. Thanks so much, RS, for your loyalty to your once loyal associates. And thank you also, Gooch and Day for destroying the value of the company and my company stock from the employee SPP. Good riddance to bad trash. Oh for the days of Charles Tandy and John Roach.

September 26 2012 at 2:09 PM Report abuse rate up rate down Reply
jjmtprospect

Both Gooch and Day were jackasses, which only makes me wonder about the BOD. Yes I worked at RS for 28 years, and was "let go" for a bad report in selling "revenue drivers". I don't miss it one iota. The stores have turned into "Cell Phone Shack". I hold a degree in Electronics Technology, and was another one of those who actually enjoyed advising my customers with technical electronics issues (mobile phones are NOT technical issues). The last time I went into a RS, there were 3 women there that didn't know what a mike clip was. I said never mind, I know what I'm looking for (I even knew the stock #). Seems RS's grand plan was to weed out all the older, more technically knowledgeable associates that actually gave RS some credibility. Thanks so much, RS, for your loyalty to your once loyal associates. And thank you also, Gooch and Day for destroying the value of the company and my company stock from the employee SPP. Good riddance to bad trash. Oh for the days of Charles Tandy and John Roach.

September 26 2012 at 2:09 PM Report abuse rate up rate down Reply
shwoodworking

They are very expensive, I looked for a cable for my mp3 player, $2.99 with shipping on-line from another source, $19.99 in their store. In my area, they have ads for managers everyday. There has to be some issues if they have such a consistent rate of turnover.

September 26 2012 at 1:16 PM Report abuse rate up rate down Reply
shwoodworking

They are very expensive, I looked for a cable for my mp3 player, $2.99 with shipping on-line from another source, $19.99 in their store. In my area, they have ads for managers everyday. There has to be some issues if they have such a consistent rate of turnover.

September 26 2012 at 1:16 PM Report abuse rate up rate down Reply
niceguy71653

That's really sad. I know him personally and he is an exceptionally nice person and very good businessman. The problem is the same for every bricks and mortor company when conumers can shop on line for less. Then people complain when they need somethign right now and can't find it. We've all been Walmartized: the only thing that counts is price.

September 26 2012 at 1:09 PM Report abuse rate up rate down Reply
talari

Nobody repairs anything anymore.... Throw it away, a new one is cheaper.

September 26 2012 at 1:02 PM Report abuse rate up rate down Reply
snbrn

I miss what Radio Shack was when it first opened (at least here in IL) a place to buy components for DIY and hard to find items. Now it pretty much carries the same thing as any electronics store. I don't think I've been in one since the 1980's or so when they started selling pre-fab remote control cars.

September 26 2012 at 12:52 PM Report abuse rate up rate down Reply
ariel

I see no need for this retail chain. There prices are always out of line and when I do need some electronic
component or accessory I can find it online for less money.

September 26 2012 at 12:49 PM Report abuse rate up rate down Reply
ariel

I see no need for this retail chain. There prices are always out of line and when I do need some electronic
component or accessory I can find it online for less money.

September 26 2012 at 12:49 PM Report abuse rate up rate down Reply
bensintbictalin

That's no surprise. I worked for this bunch for a while and I have to tell you that it is rare to see the clowns in charge of the finances of the circus. This company had a happy niche as the place to go to get expert advice on electronics. I would help people hook up serious home entertainment arrangements that could record stuff coming from Mars, explain how things worked, and steered them away from things that wouldn't, couldn't, or shouldn't be done with their sound systems. Then, enter the gooch (yeah, you jackass fans know what I'm talking about) and all he wants us to do is sell mobile phones. It's kinda like having chick-fil-a sell pulled pork sandwiches. It's not what the public expects. The merchandise selection took a radical shift away from its target audience, and the field officers went on rampages to destroy the morale of their management staff. I watched a lot of good people walk because of this and one of the finest district managers I've ever known was fired because his district couldn't sell enough iphone 3's just a few months before the introduction of iphone 4...cost him his wife, his house, and his disposition. Replacing the gooch is a step in the right direction. Maybe they'll re-think what their company was really about and bring it back to what it once was.

September 26 2012 at 12:46 PM Report abuse rate up rate down Reply