Radio Shack CEO Resigns
DALLAS (AP) - RadioShack Corp.'s embattled president and CEO, David Edmondson, resigned Monday following questions about his resume's accuracy.
The Fort Worth electronics retailer said in a statement that its board had accepted his resignation and had promoted Claire Babrowski, who most recently served as executive vice president and chief operating officer, to acting CEO.
The Fort Worth company said last week that it would hire outside lawyers to investigate errors in Edmondson's resume, including claims that he earned two college degrees for which the school he attended has no records. That investigation won't continue since Edmondson quit, the company said.
Edmondson said he took responsibility for errors in the resume, which were first reported by the Fort Worth Star-Telegram.
On Monday, Edmondson issued a brief statement but did not discuss his resume.
``For the last 11 years, it has been my privilege to be associated with RadioShack,'' he said. ``At this time the board and I have agreed that it is in the best interest of the company for new leadership to step forward so that our turnaround plan has the best possible chance to succeed, as I know it will.''
RadioShack said Friday its fourth-quarter earnings fell 62 percent and disclosed plans to close 400 to 700 stores and two distribution centers as part of a campaign to fix its financial performance. Its shares tumbled 8 percent, after sinking at midday to a three-year low of $19.08.
``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, citing Edmondson's push to incorporate wireless products into RadioShack's retail mix.
The move did not surprise Stacey Widlitz, analyst for Fulcrum Global Partners Inc., though she didn't think the change would come on a public holiday, as it did, when financial markets were closed.
``If you think about his tenure, it's not as if he's led a turnaround of this company,'' she said. ``That being said, it would be difficult for the board, considering the things that have come out, to find a reason to keep him.''
Edmondson had claimed that he received degrees in theology and psychology from Pacific Coast Baptist College in California, which moved in 1998 to Oklahoma and renamed itself Heartland Baptist Bible College.
The school's registrar told the Star-Telegram that records showed Edmondson completed only two semesters and that the school never offered degrees in psychology. The school official declined to comment to The Associated Press.
The company has since removed biographical sketches of its executives, including Babrowski, and replaced it with the following statement: ``We are currently updating and validating all of the biographical information for each of our senior executives.''
Widlitz said Babrowski, a former McDonald's Corp. executive hired last summer, would fit well as CEO, even if it's temporary.
``She's the right candidate,'' Widlitz said. ``I like her approach at how she looks at the business. She walks into a store and wants to see it through the consumer's eyes.''
Edmondson, 46, joined RadioShack in 1994 and has been CEO since May. He said Wednesday he believes that he received a theology diploma called a ThG, but not the four-year bachelor of science degree listed on his resume. He added that he cannot document the ThG diploma.
Edmondson is also scheduled to stand trial in Fort Worth in April on charges of driving while intoxicated.
The Fort Worth electronics retailer said in a statement that its board had accepted his resignation and had promoted Claire Babrowski, who most recently served as executive vice president and chief operating officer, to acting CEO.
The Fort Worth company said last week that it would hire outside lawyers to investigate errors in Edmondson's resume, including claims that he earned two college degrees for which the school he attended has no records. That investigation won't continue since Edmondson quit, the company said.
Edmondson said he took responsibility for errors in the resume, which were first reported by the Fort Worth Star-Telegram.
On Monday, Edmondson issued a brief statement but did not discuss his resume.
``For the last 11 years, it has been my privilege to be associated with RadioShack,'' he said. ``At this time the board and I have agreed that it is in the best interest of the company for new leadership to step forward so that our turnaround plan has the best possible chance to succeed, as I know it will.''
RadioShack said Friday its fourth-quarter earnings fell 62 percent and disclosed plans to close 400 to 700 stores and two distribution centers as part of a campaign to fix its financial performance. Its shares tumbled 8 percent, after sinking at midday to a three-year low of $19.08.
``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, citing Edmondson's push to incorporate wireless products into RadioShack's retail mix.
The move did not surprise Stacey Widlitz, analyst for Fulcrum Global Partners Inc., though she didn't think the change would come on a public holiday, as it did, when financial markets were closed.
``If you think about his tenure, it's not as if he's led a turnaround of this company,'' she said. ``That being said, it would be difficult for the board, considering the things that have come out, to find a reason to keep him.''
Edmondson had claimed that he received degrees in theology and psychology from Pacific Coast Baptist College in California, which moved in 1998 to Oklahoma and renamed itself Heartland Baptist Bible College.
The school's registrar told the Star-Telegram that records showed Edmondson completed only two semesters and that the school never offered degrees in psychology. The school official declined to comment to The Associated Press.
The company has since removed biographical sketches of its executives, including Babrowski, and replaced it with the following statement: ``We are currently updating and validating all of the biographical information for each of our senior executives.''
Widlitz said Babrowski, a former McDonald's Corp. executive hired last summer, would fit well as CEO, even if it's temporary.
``She's the right candidate,'' Widlitz said. ``I like her approach at how she looks at the business. She walks into a store and wants to see it through the consumer's eyes.''
Edmondson, 46, joined RadioShack in 1994 and has been CEO since May. He said Wednesday he believes that he received a theology diploma called a ThG, but not the four-year bachelor of science degree listed on his resume. He added that he cannot document the ThG diploma.
Edmondson is also scheduled to stand trial in Fort Worth in April on charges of driving while intoxicated.
posted by Bludlust at 9:52 AM
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