FORT WORTH, Texas—Shares of RadioShack Corp. lurched after company named former KMart Holding Corp. and Sears, Roebuck and Co. executive Julian Day as its new chairman and chief executive officer.
Day has drawn accolades for reviving Safeway Inc., where he served as chief financial officer and then chief operations officer, and KMart, which he led out of bankruptcy as president. The 54-year-old replaces Dave Edmondson, who resigned in February following questions about dubious claims on his resume.
Day—who will draw an annual base salary of $1 million plus bonuses and stock options—once again faces a daunting task in redirecting a major retailer. RadioShack shares have plunged 60 percent in the past 18 months as the company has struggled with problems including lagging wireless sales partially due to a difficult transition from selling Verizon Wireless to now selling service from Cingular Wireless L.L.C.
“Julian has a deep understanding of the retail industry in North America,” said Thomas Plaskett, presiding director for the electronic chain’s board of directors. “His extensive knowledge of retail operations and his experience in revitalizing some of the great American retail brands make him the ideal person to lead RadioShack as we re-establish its pre-eminent position in the industry.”
Investors were pleased with the move as shares jumped $2.94, or 21 percent, to $16.70 following the announcement.
