Standard General acquires RadioShack, appoints new CEO

Standard General has reportedly named former Dell executive Ron Garriques as RadioShack's (NYSE:RSH) new CEO, replacing Joseph Magnacca, who resigned Wednesday after two years leading the company.

Garriques will oversee Standard General's new subsidiary after several years at Dell, where he was in charge of communications and consumer divisions, reported the Wall Street Journal. He has also held positions at Motorola and Bell Labs.

Standard General Managing Partner Soohyung Kim devised a strategy for keeping a gutted RadioShack chain open for business. The plan, discussed during a conference call open to employees, store landlords and other parties, included carving out a space for Sprint in the new stores as the mobile service provider seeks to grow its retail footprint.

"We tried to save as much of the company as we could... [to] prove wrong those who wanted to shut this company down," Kim said.

The decision is just the latest in a series of moves between hedge fund Standard General and RadioShack designed to bring the struggling retailer back to a state of profitability. A bankruptcy judge approved the sale of more than 1,740 RadioShack stores to Standard General last week, preserving approximately 7,500 jobs, reported the Associated Press.

Standard General's bid was valued at $160 million and has been viewed as a superior alternative to a liquidation proposal issued by another bidding group.

The chain has been slimmed down with the shuttering of 2,000 RadioShack stores that are in the process of closing or have already closed.

In a last-minute revision, Standard General agreed that intellectual property and customer data would not be a part of the sale. RadioShack had previously considered selling private customer information, despite a privacy agreement that included a promise not to do so.

For more:
-See this Wall Street Journal article
-See this Associated Press article

Related stories:
RadioShack selling brand and locaitons separately
RadioShack pushing for faster sale of assets
RadioShack may be down, but it's not totally out
RadioShack files for bankruptcy
RadioShack preparing to file for Chapter 7

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