RadioShack, the popular electronics retailer, can’t seem to hold onto its CEOs as today, it was officially announced that James F.Gooch, the company’s CEO is stepping down. Gooch’s replacement is already underway as RadioShack’s board has brought in an executive search firm to find the replacement.
Gooch was the chief financial officer at RadioShack before he became the chief executive. He served as the CEO for less than a year and half. Following his departure, the strip mall staple’s stock dropped by 80%.
When Gooch announced the second-quarter earnings of the retailer in July, he said that overall, RadioShack had performed below expectations. During the first quarter of 2012 the company earned $24.9 million which dropped to $21 million in the second-quarter.
RadioShack isn’t the only electronics retailer that has suffered from loss; other retailers such as Best Buy also changed their CEO for the third time in only six months. Analysts blame online retailers like Amazon and its popular low margin sales strategy for the downfall of physical retailers.
Best Buy Co. announced a new chief executive on Monday. The company named Hubert Joly as the new CEO. Previously Joly served as a CEO for T.G.I Friday’s parent company, Carlson and Radisson. The move to name a new CEO came as sales of Best Buy Co. dropped.
Best Buy Co.’s previous CEO Brian Dunn was forced out because of a scandal. The scandal also forced co-founder Richard Schulz who is now trying to acquire Richfield, Minn.
The RadioShack board chairman Daniel R.Feehan said very little words of comfort for James F.Gooch. In an official statement, he said that the board of directors thanked him for his services and wishes him well for the future.
The company’s chief financial officer and executive vice president, Dorvin Lively will serve as acting CEO of RadioShack.
During midday trading in New York, Radioshack’s stocks were down by 2 cents to $2.54.
|Tags: board, CEO Brian Dunn, company, companyâ, Daniel R, executive, Hubert Joly, James F.Gooch, Minn., New York, officer, RadioShack, RadioShackâ, replacement, retailer, Richard Schulz, scandal, T.G.I Fridayâ|
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