RadioShack will move ahead with its turnaround plans despite the resignation of CEO David Edmondson.
Edmonson tendered his resignation on Monday after admitting that he lied about his educational background. An outside investigation into Edmondson’s education claims will not continue, according to RadioShack. The company’s board of directors knew “some, but definitely not all” of the issues raised in the last week, Roberts said.
Edmondson’s resignation comes just days after RadioShack announced plans to close 400 to 700 stores over 18 months, expand its kiosk business and improve its real estate (Xtra Feb. 21).
RadioShack promoted Claire Babrowski to president and acting CEO, and hired search firm Spencer Stuart to recruit a new CEO. Babrowski, who had been executive VP-chief operating officer, will keep the COO title. She has been with RadioShack for less than a year, joining the retailer in July 2005 after 30 years at McDonald’s Corp.
Edmondson, who took the helm in May, is an 11-year veteran at RadioShack, credited with bringing wireless products to RadioShack’s merchandise mix. Ironically, it’s the slow growth of wireless goods that prompted RadioShack to cut stores in an effort to boost the average sales volume per store, and make its square footage more profitable.
“This situation is especially painful, because Dave is a talented and dedicated individual who has made many contributions to the company,” said Executive Chairman Leonard Roberts in a statement. “Dave recognized that major distractions for the company could negatively impact its efforts to implement the company’s turnaround strategy.”
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