FORT WORTH, Texas—Shares of RadioShack Corp. lost ground after spiking on news of Chief Executive Officer David Edmondson’s resignation.
Edmondson, who last week admitted to embellishing educational accomplishments on his resume, stepped down following what the company described as “a series of mutual discussions about what is best for RadioShack.” The electronics retailer named Claire Babrowski, who has served as executive vice president and chief operating officer, as president and acting CEO.
Investors appeared to greet Edmondson’s exit warmly as shares of the company jumped 93 cents, or 5 percent, to $20.01 in premarket trading. But the gains were erased soon thereafter, with shares trading at $19.06.
Leonard Roberts, RadioShack’s executive chairman, said the board knew about “some, but definitely not all” of the errors on Edmondson’s resume. RadioShack hired executive search firm Spencer Stuart to find Edmonson’s replacement; Babrowski, who is a candidate for the job, will continue to serve as COO.
Edmondson’s inflated qualifications may not be the sole reason for his departure, however. The company last week announced plans to shutter as many as 700 stores and take a large write-down following a sluggish fourth quarter due largely to disappointing wireless sales.
RadioShack’s profit for the quarter ended Dec. 31 sank 62 percent to $49.5 million, or 36 cents a share, from $131 million, or 81 cents a share, in the prior year. The retailer continued to suffer as it transitioned from offering Verizon Wireless’ phones and services to those of Cingular Wireless L.L.C.
