The problems plaguing RadioShack (NYSE:RSH) are piling up. Shares in the electronics retailer have dropped 74 percent since the beginning of the year, dividends were suspended in July, selling lower-margin Apple (NASDAQ:AAPL) iPhones have eaten into the retailer’s margins, Best Buy’s (NYSE:BBY) smaller-sized stores have increased competition, and Chief Executive Officer James Gooch left the company Wednesday after a 16-month term.
A statement released by the Texas-based company said the board and Gooch agreed he would step down from his role as Chief Executive, effective immediately. However, no reasons were specified. He was replaced by the company’s Chief Financial Officer, Dorvin Lively, on an interim basis.
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Since the beginning of the year, Radioshack has seen an executive shift; Chief Merchandise Officer Scott E. Young resigned in June and Chief Marketing Officer Lee Applbaum departed in March. The company has yet to find a permanent replacement for either of the positions.
Gooch, who had been the company’s Chief Financial Officer since 2006, was working to stimulate stagnant sales before his departure. The company’s growth strategy has focused on selling more expensive tablets and smartphones, a niche that benefited from strong demand but suffered from fierce competition. According to data compiled by Bloomberg, the industry’s fierce competition hurt sales; the company will post a net loss of $27.2 million this year.
“Gooch simply was not effective, and a change clearly needed to be made,” said BB&T Capital Markets analyst Anthony Chukumba in a research note.
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