Tuesday, February 1, 2011

RadioShack struggling says Chief will depart

RadioShack has struggled with competition from online retailers such as Amazon.com and largest electronics retailers like Best Buy. It resulted in Mr. day, a former investment banker who helped pull Kmart out of bankruptcy in 2006 to help turn around the results.

Since then, the company has shifted its attention to smartphones, wireless plans and mobile kiosks with some success. But Monday, said "disappointing" from its activity of T-Mobile and a change in sales towards the bottom edge handsets bad results in the fourth quarter. Smartphones like the iPhone, RadioShack started recently achievement, have a bottom margin of any other product.

The company had also increased costs as it invested in kiosks in target stores.

RadioShack began to open stalls, offering wireless products, target stores and mobile phones last year. Plan to have them in most target stores from mid-2011.

RadioShack said that Mr. Day, 57, is retiring as President, CEO and Director as its annual meeting of shareholders on May 16th.

Mr. day's duties will be divided. James f. Gooch, 43, the chief financial officer, will become President and chief executive. Mr. Gooch was appointed President effective immediately. He will assume the position of Executive Director at the time of retirement of Mr. day

Daniel r. Feehan becomes nonexecutive Chairman of the Board of Directors. He has been a Director since 2003 and is currently President and chief executive of America Cash International.

RadioShack announced preliminary fourth earn 50-54 cents a share, in the 67 cents expected by analysts.

Stocks of RadioShack, which is headquartered in Fort Worth, fell to $ 1.00 to close at $ 15.62 a share.

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