RadioShack Corp.'s embattled president and CEO, David Edmondson, has resigned five days after admitting that he "misstated" his academic record.
The electronics chain â which is based in Fort Worth, Texas â said in a statement Monday that the board had accepted Edmondson's resignation. He will be replaced temporarily by Claire Babrowski, currently executive vice-president and chief operating officer.
"At this time the board and I have agreed that it is in the best interest of the company for new leadership to step forward so that our turnaround plan has the best possible chance to succeed, as I know it will," Edmondson said in a media release Monday afternoon.
- FROM FEB. 16, 2006: RadioShack CEO apologizes for resumÃ© errors
The story became a major issue last week after the RadioShack board announced that it was hiring outside lawyers to investigate claims that its CEO had reported two college degrees for which his school had no records.
Edmondson, 46, had claimed degrees in theology and psychology from Pacific Coast Baptist College in California, which moved in 1998 to Oklahoma, where it was renamed Heartland Baptist Bible College.
The school's registrar told the Fort Worth Star-Telegram that records showed Edmondson completed only two semesters, and that the school never offered degrees in psychology.
Edmondson joined RadioShack in 1994 and became chief executive officer last May.
Edmondson said he took responsibility for any errors in his resumÃ©, and that he believed he earned one of the degrees but could not document it.
"The contents of my resumÃ© and the company's website were clearly incorrect," Edmondson said in a statement Wednesday. "I clearly misstated my academic record, and the responsibility for these misstatements is mine alone."
"I apologize to the board and the employees for the confusion I have created by carrying erroneous information on my resumÃ© and mishandling my explanation of it," Edmondson said. "I will provide all information to the board in order to clarify these issues."
The controversy over Edmondson's resumÃ© came at a difficult time for the company.
It announced a 62-per-cent drop in its fourth-quarter earnings on Friday. It also announced plans to close between 400 and 700 stores and two distribution centres as part of a campaign to fix its financial performance.
Company shares (NYSE:RSH) fell $1.67 or 8.05 per cent to $19.08 US on Friday on the New York Stock Exchange.
U.S. markets were closed Monday because of the Presidents Day holiday.
- FROM Apr. 24, 2005: Canadian RadioShack stores get new name
RadioShack operated in Canada for many years through a licensing deal with InterTan, based in Barrie, Ont. That arrangement ended in 2005 when Circuit City bought InterTan. InterTan renamed its stores The Source by Circuit City.