As bankruptcy looms for RadioShack, we ask its chief financial officer... oh. He's quit

Troubled retailer may not last 'beyond the very near term'


The chief financial officer of struggling US electronics retailer RadioShack has resigned – as the company faces a fiscal crisis from which it has warned it may not be able to recover.

John Feray, who had served as RadioShack's CFO for nine months, stepped down on September 12, a new filing with the Securities and Exchange Commission reveals.

That would be one day after the company released its latest 10-Q quarterly report to the SEC, in which it warned that drastic measures may be needed if it is to weather its crisis.

"We have experienced losses for the past two years that continued to accelerate into the second quarter of fiscal 2015, primarily attributed to a prolonged downturn in our business," the report bluntly stated.

RadioShack posted an operating loss of $200.4m for the 26 weeks that ended on August 2, 2014, compared to a loss of $61.4m for the six months that ended on July 31, 2013.

The company began life of as a retailer of "ham" radio equipment, electronics supplies, amplifiers, speakers, and the like, then branched out into personal computers in the 1970s with its fondly remembered TRS-80.

As the market for its earlier product lines softened, however, more recently it has concentrated on selling mobile phones. But aggressive price competition and marketing by the wireless carriers has left RadioShack struggling to stay afloat, and it has warned that it risks becoming insolvent.

The company said it is considering various options, including seeking a recapitalization and investment agreement, selling the company outright, and various debt restructuring offerings, but that even these may not be enough to keep its doors open.

"If acceptable terms of a sale or partnership or out-of court restructuring cannot be accomplished, we may not have enough cash and working capital to fund our operations beyond the very near term, which raises substantial doubt about our ability to continue as a going concern," RadioShack's quarterly report stated.

That would mean bankruptcy, it said – either under Chapter 11 of the US Bankruptcy Code, which would allow it to restructure its debts and continue operations, or under Chapter 7, under which it would cease operations and its assets would be liquidated by a trustee.

Whatever measures RadioShack pursues, however, Feray won't be the one to oversee them.

In his place, the company has appointed Holly Felder Etlin, a managing director of consulting firm AlixPartners, as interim CFO. Etlin has worked extensively with RadioShack in the past and served as its CFO prior to Feray's appointment. ®

Similar topics

Broader topics


Other stories you might like

  • Zuckerberg sued for alleged role in Cambridge Analytica data-slurp scandal
    I can prove CEO was 'personally involved in Facebook’s failure to protect privacy', DC AG insists

    Cambridge Analytica is back to haunt Mark Zuckerberg: Washington DC's Attorney General filed a lawsuit today directly accusing the Meta CEO of personal involvement in the abuses that led to the data-slurping scandal. 

    DC AG Karl Racine filed [PDF] the civil suit on Monday morning, saying his office's investigations found ample evidence Zuck could be held responsible for that 2018 cluster-fsck. For those who've put it out of mind, UK-based Cambridge Analytica harvested tens of millions of people's info via a third-party Facebook app, revealing a – at best – somewhat slipshod handling of netizens' privacy by the US tech giant.

    That year, Racine sued Facebook, claiming the social network was well aware of the analytics firm's antics yet failed to do anything meaningful until the data harvesting was covered by mainstream media. Facebook repeatedly stymied document production attempts, Racine claimed, and the paperwork it eventually handed over painted a trail he said led directly to Zuck. 

    Continue reading
  • Florida's content-moderation law kept on ice, likely unconstitutional, court says
    So cool you're into free speech because that includes taking down misinformation

    While the US Supreme Court considers an emergency petition to reinstate a preliminary injunction against Texas' social media law HB 20, the US Eleventh Circuit Court of Appeals on Monday partially upheld a similar injunction against Florida's social media law, SB 7072.

    Both Florida and Texas last year passed laws that impose content moderation restrictions, editorial disclosure obligations, and user-data access requirements on large online social networks. The Republican governors of both states justified the laws by claiming that social media sites have been trying to censor conservative voices, an allegation that has not been supported by evidence.

    Multiple studies addressing this issue say right-wing folk aren't being censored. They have found that social media sites try to take down or block misinformation, which researchers say is more common from right-leaning sources.

    Continue reading
  • US-APAC trade deal leaves out Taiwan, military defense not ruled out
    All fun and games until the chip factories are in the crosshairs

    US President Joe Biden has heralded an Indo-Pacific trade deal signed by several nations that do not include Taiwan. At the same time, Biden warned China that America would help defend Taiwan from attack; it is home to a critical slice of the global chip industry, after all. 

    The agreement, known as the Indo-Pacific Economic Framework (IPEF), is still in its infancy, with today's announcement enabling the United States and the other 12 participating countries to begin negotiating "rules of the road that ensure [US businesses] can compete in the Indo-Pacific," the White House said. 

    Along with America, other IPEF signatories are Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam. Combined, the White House said, the 13 countries participating in the IPEF make up 40 percent of the global economy. 

    Continue reading
  • 381,000-plus Kubernetes API servers 'exposed to internet'
    Firewall isn't a made-up word from the Hackers movie, people

    A large number of servers running the Kubernetes API have been left exposed to the internet, which is not great: they're potentially vulnerable to abuse.

    Nonprofit security organization The Shadowserver Foundation recently scanned 454,729 systems hosting the popular open-source platform for managing and orchestrating containers, finding that more than 381,645 – or about 84 percent – are accessible via the internet to varying degrees thus providing a cracked door into a corporate network.

    "While this does not mean that these instances are fully open or vulnerable to an attack, it is likely that this level of access was not intended and these instances are an unnecessarily exposed attack surface," Shadowserver's team stressed in a write-up. "They also allow for information leakage on version and build."

    Continue reading
  • A peek into Gigabyte's GPU Arm for AI, HPC shops
    High-performance platform choices are going beyond the ubiquitous x86 standard

    Arm-based servers continue to gain momentum with Gigabyte Technology introducing a system based on Ampere's Altra processors paired with Nvidia A100 GPUs, aimed at demanding workloads such as AI training and high-performance compute (HPC) applications.

    The G492-PD0 runs either an Ampere Altra or Altra Max processor, the latter delivering 128 64-bit cores that are compatible with the Armv8.2 architecture.

    It supports 16 DDR4 DIMM slots, which would be enough space for up to 4TB of memory if all slots were filled with 256GB memory modules. The chassis also has space for no fewer than eight Nvidia A100 GPUs, which would make for a costly but very powerful system for those workloads that benefit from GPU acceleration.

    Continue reading
  • GitLab version 15 goes big on visibility and observability
    GitOps fans can take a spin on the free tier for pull-based deployment

    One-stop DevOps shop GitLab has announced version 15 of its platform, hot on the heels of pull-based GitOps turning up on the platform's free tier.

    Version 15.0 marks the arrival of GitLab's next major iteration and attention this time around has turned to visibility and observability – hardly surprising considering the acquisition of OpsTrace as 2021 drew to a close, as well as workflow automation, security and compliance.

    GitLab puts out monthly releases –  hitting 15.1 on June 22 –  and we spoke to the company's senior director of Product, Kenny Johnston, at the recent Kubecon EU event, about what will be added to version 15 as time goes by. During a chat with the company's senior director of Product, Kenny Johnston, at the recent Kubecon EU event, The Register was told that this was more where dollars were being invested into the product.

    Continue reading

Biting the hand that feeds IT © 1998–2022