Consumer-electronics retailer RadioShack Corp. (RSH) said this morning that its Chief Executive Officer and director James. F. Gooch will be immediately leaving the company. Gooch will step-down as part of a mutual agreement with the board of directors for the struggling Fort Worth, Texas-based retailer.
Gooch assumed the chief executive position in May of 2011 after serving as Chief Financial Officer since August 2006. The company reported that it is hiring an executive search firm to find a replacement for Gooch and that CFO Dorvin Lively will serve as interim CEO. Lively has held the executive finance position since joining Radio Shack in August 2011 from independently-owned Ace Hardware Corporation.
"Moving forward with the decision sooner rather than later will help establish the right leadership to address the company's challenges and capitalize on its opportunities," according to a RadioShack spokesman.
Shares of RadioShack have faced intense pressure as the company struggles with fierce competition in the mobile device and electronics industry. With a close at $2.56 on Tuesday, shares have lost about three-quarters of their value in 2012 and are sitting just above historic lows of $2.36 hit in July.
In July, the company surprised with second quarter losses, marking the second straight quarter failing to make money. It also lowered its yearly outlook and suspended its dividend payment in an attempt to preserve cash to pay down debt. The embattled firm also laid-off an undisclosed number of workers at its headquarters.
Yesterday, RadioShack was bumped from the S&P MidCap 400 index because its spiraling market capitalization is now too small. In June it was dropped from the S&P 500 index.
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