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UPDATE 1-RadioShack names turnaround expert as interim CFO
2013年7月23日 / 中午11点52分 / 4 年内

UPDATE 1-RadioShack names turnaround expert as interim CFO

By Dhanya Skariachan

July 23 (Reuters) - RadioShack Corp named Holly Etlin, a managing director at turnaround firm AlixPartners, as interim chief financial officer on Tuesday and reported a wider-than-expected loss.

The development came on the same day the company also said it expects a turnaround to take several quarters.

Etlin will replace Dorvin Lively, who resigned to fill the same post at Planet Fitness.

RadioShack took more discounts to get rid of “unproductive” inventory, squeezing margins in the latest quarter. The net loss widened to $53.1 million, or 53 cents a share, from $21 million, or 21 cents a share, a year earlier.

Analysts, on average, looked for a loss of 24 cents a share, according to Thomson Reuters I/B/E/S.

Several days ago, reports had surfaced that the struggling retailer was talking to bankers about refinancing its debt. On Tuesday, Chief Executive Joe Magnacca said the retailer will work with AlixPartners and investment banking firm Peter J. Solomon Co to engineer a turnaround.

Despite the problems and weakness in margins, Magnacca said RadioShack reported a rise in second-quarter sales at its established stores for the first time since 2010.

“Looking ahead, we expect the turnaround to take several quarters, and during that time our results may vary from quarter to quarter as we make strategic changes to improve our long-term financial performance,” Magnacca said.

The stock rose more than 6 percent to $3.11 on premarket trading.

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