RadioShack is hurting for cash and warned last week that it might be forced to default on its debt. Credit Spencer Platt/Getty Images
The struggling electronics retailer RadioShack has retained a new advisory firm and appointed one of the firm’s consultants as its temporary finance chief.
RadioShack said in a regulatory filing on Tuesday that it had hired FTI Consulting, a firm that advises troubled companies, and named Carlin Adrianopoli, a senior managing director in FTI’s corporate finance and restructuring practice, as interim chief financial officer.
Mr. Adrianopoli takes over from Holly Etlin, a managing director at the turnaround consulting firm AlixPartners, who had been the interim finance chief since September.
While RadioShack did not give a reason for the change, it comes during a crisis for the company. Troubled by falling sales and other problems, RadioShack is hurting for cash and warned last week that it might be forced to default on its debt. The company also detailed a plan to sell rights to raise cash.
RadioShack reported $43.3 million of cash as of Nov. 1, compared with $179.8 million at the end of 2013.
The company’s stock fell 12 percent on Tuesday morning, to about 35 cents a share.
RadioShack has taken a number of steps to try to repair its finances. In October, it restructured part of its debt through an agreement with Standard General, a hedge fund. If RadioShack can survive through the holiday season and meet other requirements, Standard General and its partners will own at least half of the company’s shares.
Mr. Adrianopoli, the new interim finance chief, joined FTI in 2002, and he is being paid by FTI and not directly by RadioShack, according to the filing on Tuesday.
He is the latest in a parade of finance executives this year. Ms. Etlin, when she was appointed interim finance chief in September, took over from John Feray, who had been the chief financial officer since February and resigned for “personal reasons.â€
Mr. Feray had succeeded Ms. Etlin, who had held the job since the summer of 2013 on an interim basis.
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The post RadioShack Names FTI Consultant as Interim Finance Chief – New York Times appeared first on Evan Vitale Consulting Blog.
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