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FORT WORTH, Texas (AP) — RadioShack has hired former Treasury Department adviser Harry J. Wilson to help with its turnaround efforts.
The struggling consumer electronics retailer said Wednesday that Wilson will serve as chief revitalization officer, reporting to its board and CEO Joe Magnacca.
Wilson is the founder and CEO of The Maeva Group. He previously served as a senior adviser in the Treasury Department and was a senior member of the Auto Task Force, which was responsible for the Treasury's role in the restructuring of General Motors and Chrysler.
David Schick of Stifel Nicolaus said in a client note that Wilson's background "brings expertise and gravitas toward a turnaround or restructuring." Still, the analyst said that he continues to believe that RadioShack needs more capital infusions and flexibility from lenders or it may run out of capital some time in 2015.
RadioShack warned in September that it might need to file for Chapter 11 bankruptcy protection as it struggles to compete with online retailers. The company has been trying to turn around its business for more than 18 months. Its efforts have included cutting costs, renovating and closing stores, and shuffling management.
Earlier this month RadioShack said it inked deals with a group of investors to restructure part of its debt and access funds. The company said that Standard General LP and other investors acquired a credit line that GE Capital had extended to RadioShack. The retailer expected it would be able to draw on that credit to buy inventory ahead of the holiday shopping season. RadioShack said that Standard General, Litespeed Management and other investors are providing $120 million in an investment that the chain expects will be converted into equity securities.
Shares of RadioShack Corp., which is based in Fort Worth, Texas, rose 1 cent to 99 cents in afternoon trading.
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