James Gooch, the CEO at RadioShack agreed to resign his position immediately. He will leave his post on the board of directors as well, announced the consumer electronics company on Wednesday.
RadioShack has had to deal with consumers who have increasingly stopped purchasing cameras and computers and started purchasing smartphones and tablets, which are much less profitable to retailers. RadioShack posted in July a second quarter loss that was not expected and its dividend was suspended at the same time. The consumer electronics chain is having problems party due to the overall problems with the brick and mortar consumer electronics industry, as it is becoming much hard to sell consumer electronics in stores, as online purchases have taken hold.
Stock for RadioShack has taken a big hit this year. Since the start of 2012, shares have fallen by 74%. Shares reached an all time low in July of $2.36. On Tuesday, the stock closed at the price of $2.56, but was up two cents during trading early Wednesday.
Dorvin Lively, the current Chief Financial Officer will serve as the company’s interim CEO, while a permanent replacement is sought by the company.
RadioShack announced it was hiring a search firm to help locate a new CEO and it was considering internal candidates for the position. Gooch took the CEO position in May of 2011. He joined RadioShack as the CFO in 2006 and when Julian Day retired as the CEO, Gooch took over that position.
The board announced that it had reached an agreement that Gooch would step down from the board and as CEO. They thanked him for his service to RadioShack and wished him well.