David Edmondson resigned yesterday as president and CEO and as a director of U.S. consumer electronics retailer RadioShack Corporation (Fort Worth, Texas, U.S.). The resignation comes on the heels of last week's poor results announcement and after the announcement of an "outside investigation" related to Edmondson’s résumé.
On Friday, APPLIANCE magazine wrote that RadioShack reported a fourth quarter 2005 decline of 62 percent in net income and 56 percent in diluted earnings per share. Edmondson said Friday that the company's turnaround plan would be accelerated and would include the closing of from 400 to 700 company-operated stores. Currently, the company has nearly 7,000 company and dealer stores, including more than 100 locations in Mexico and more than 700 wireless kiosks.
Executive Chairman Leonard Roberts said yesterday that the resignation resulted from a series of mutual discussions about what is best for RadioShack and all of its constituencies. Roberts said the outside investigation related to Edmondson’s résumé will not continue.
The board promoted executive vice president and chief operating officer (COO) Claire Babrowski to president and acting CEO of RadioShack. She will retain the title of COO. Before joining RadioShack last year, Babrowski spent 30 years at McDonald’s Corporation, where she was senior executive vice president and chief restaurant operations officer.
Executive search firm Spencer Stuart has been retained to conduct a nationwide search for a new CEO. Roberts expects both external and internal candidates to be considered for the post.
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