RadioShack has named former U.S. Treasury Department adviser Harry Wilson as its chief revitalization officer, enlisting a turnaround expert who helped restructure General Motors and Chrysler.
Wilson, founder of the advisory firm Maeva Group, will report to RadioShack’s board and Chief Executive Officer Joe Magnacca, the Fort Worth-based company said today in a statement. The struggling electronics retailer, which received a rescue financing package earlier this month, cited Wilson’s experience reviving U.S. automakers in the wake of the recession. He was a senior member of the Auto Task Force, which led the Treasury Department’s role in revamping GM and Chrysler. “Harry Wilson’s experience in guiding companies through successful turnarounds speaks for itself and will be extremely valuable as we continue our efforts to revitalize the company,” Magnacca said in the statement. RadioShack’s financing agreement this month provided cash to help get through the holiday season and loosened restrictions on what the company can draw on a revolving line of credit. It may also give the retailer more leeway to close unprofitable stores. While Wilson has experience with companies in crisis, he doesn’t have a retail background. That makes his appointment “a bit of a headscratcher,” said Scott Tilghman, an analyst at B. Riley & Co. in Boston. RadioShack’s main challenge is getting customers back into stores, Tilghman said. RadioShack shares (ticker: RSH) were up a penny to 99 cents by late morning. Magnacca has worked to revamp stores and merchandise, making locations more interactive and adding services like on-site repair. So far, none of the initiatives have stemmed the decline in the business, which has posted 10 straight quarters of losses. The company had $30.5 million in cash as of Aug. 2.“They can’t revitalize if they run out of money first,” said Michael Pachter, a Los Angeles-based analyst at Wedbush Securities.Have more to add? News tip? Tell us
