RadioShack’s Chief Financial Officer John Feray has resigned after serving in that role for less than a year, leaving that post just a day after the struggling electronics retailer warned it could file for bankruptcy if efforts to overhaul the company’s balance sheet were unsuccessful.
In a short statement, the retailer said Feray resigned on Sept. 12, citing personal reasons. He is succeeded by AlixPartners managing director Holly Etlin, who is serving as CFO on an interim basis. Etlin already served as RadioShack’s (RSH) interim CFO from July 2013 to February 2014, when Feray was appointed to the role. Feray joined RadioShack from discount retailer Dollar General (DG), where he served as a member of that company’s financial team since 2008.
The change comes at a tough time for RadioShack, which last week told investors it was exploring options to overhaul the company’s balance sheet, with moves that could include a debt restructuring and possible store closures. The retailer, which sells mobile devices, accessories and other consumer electronics, has reported annual losses for two years that continued to accelerate in the current fiscal year as it faces steep competition from larger rivals that sale the same products but typically with a wider selection.
Those woes led RadioShack to warn in a Securities and Exchange Commission filing that if acceptable terms of a sale or partnership, or out-of-court restructuring, cannot be accomplished, the retailer may not have enough cash and working capital to fund its operations beyond the very near term. As a result, RadioShack warned it may be required to file for bankruptcy.