12956: Chief Creative Officer Cannon.

CNET reported RadioShack hired Nick Cannon to serve as Chief Creative Officer. Seems like a logical move to complement the failing retailer’s decision to partner with Sprint, a company that could be dubbed “The RadioShack of Telecoms.” Cannon joins a parade of questionable creative lead appointments including will.i.am, Alicia Keys, Sean Combs and Jay-Z. Then again, clients continue to do a much better job of hiring minorities than White advertising agencies. But does it indicate celebrity status is a requirement for non-White people to be considered for senior-level positions in the field?

RadioShack hires Nick Cannon to lead its renaissance

Technically Incorrect: The rapper, actor and “America’s Got Talent” host is named RadioShack’s chief creative officer. Will the company rise again to glory?

By Chris Matyszczyk

I fear that for too many people RadioShack has become as prominent as actor Josh Hartnett (remember, from “The Faculty” and “Pearl Harbor”).

The electronics chain is still there, you assume, but you haven’t seen one in a long while. Perhaps, though, RadioShack has a remedy. It announced a startling appointment as its new chief creative officer: Nick Cannon.

The rapper, actor and “America’s Got Talent” host is a lifelong RadioShack aficionado. Indeed, he credits the brand with “fostering his creative spirit and interest in electronics.” At least, that’s what RadioShack said Wednesday a press release.

Michael Tatelman, RadioShack’s chief marketing officer, told me: “Nick will play an active role in the creative process and his innovation and creativity will continue to help us curate the in-store experience. He’ll also be developing an exclusive line of products, as well as help RadioShack continue to grow our educational and S.T.E.M (science, technology, engineering and math) initiatives nationwide.”

That all sounds like a task even bigger than winning a TV talent show.

The company filed for bankruptcy in February so that an investing firm could buy 2,400 of its stores. The new RadioShack, owned now by General Wireless Inc, says it has more than 1,700 company-owned stores and nearly 500 independent dealers.

RadioShack insists that with this hire it’s signaling that “RadioShack is back.” How much time will the busy entertainer and entrepreneur (his company is called NCredible Entertainment) dedicate?

“Nick’s goal is to be in Fort Worth working with the RadioShack team as often as possible,” Tatelman told me. Ah.

The tech world is strewn with the memories of stars appointed to add their creative wits without necessarily delivering the creative hits.

Perhaps the most celebrated was Alicia Keys, hired in 2013 by BlackBerry in a role similar to Cannon’s with RadioShack. Soon after her appointment, she was caught tweeting from her Apple iPhone. As was popular in those days, she claimed she’d been hacked. She left BlackBerry less than a year later.

Cannon does have tech credentials. He appeared on CNET’s CES stage last year and said he’s been a regular visitor to Las Vegas over the years. “I was a RadioShack kid,” he explained in that interview. “I would go to RadioShack every week. It was my favorite place. It was the place I got my first DJ equipment, keyboards, that’s where I would go buy RCA cables.”

To begin its quest for hearts and minds, RadioShack recently launched a website and had a Black Friday sale. But how much life does the brand still have? Despite this latest marketing effort, will it still be cannon-fodder?

12463: RadioShack + Sprint = Failure.

The New York Post reported RadioShack is filing for bankruptcy, closing half its stores and teaming up with Sprint to keep the remaining stores open. Um, a partnership between RadioShack and Sprint is like a Republican presidential ticket featuring Mitt Romney and Sarah Palin. Or a Dumb and Dumber sequel. Or the next Draftfcb. Or a Frobinson and Shirato family reunion. Hell, the comparisons could go on forever.

RadioShack ‘Sprints’ toward bankruptcy

By James Covert

RadioShack is finally about to blow its fuse.

The flailing electronics chain is nearing a bankruptcy filing — perhaps as soon as this week — that will close nearly half its stores while keeping the rest open in a partnership with telecom giant Sprint, sources told The Post.

The Chapter 11 filing is expected to be packaged with an agreement for Sprint to take over the leases of between 1,800 and 1,900 locations, according to sources — less than half of the more than 4,000 currently in operation.

Under terms recently being negotiated, those locations would be dual-branded under both the Sprint and RadioShack names, according to a source briefed on the discussions.

The rest of the 94-year-old retailer’s locations will be shuttered — with the exception of between 200 and 400 stores, according to a source. Those will be kept open as standalone RadioShack stores, although they won’t sell mobile phones and contracts.

Under the terms of the bankruptcy, Sprint’s proposal will likely take the form of a “stalking horse” bid for the chain, with rivals getting the chance to submit offers, sources said.

RadioShack is meanwhile expected to get $275 million in debtor-in-possession financing, consisting of $25 million in new funds plus the company’s existing $250 million in first-lien debt, according to a source.

“RadioShack’s not going away, it’s going to be shrunk,” according to one insider. “The idea is to bring RadioShack back to where it was 15 or 20 years ago and just sell electronics.”

RadioShack has taken a beating from brutal competition in the wireless market. In addition to big-box retailers like Best Buy and Walmart, RadioShack has been pummeled by the rapid retail expansion of wireless carriers like Verizon, AT&T and Sprint.

Last month, Sprint CEO Marcelo Claure signaled 2015 “is a year in which we intend to grow our distribution dramatically.” Claure said, “You are going to see the opening of more and more Sprint stores as this is one area that we work on.”

11779: RadioShack Shuttered.

From The New York Post…

RadioShack to close nearly 1,100 stores

By James Covert

They’re starting to switch off the lights at RadioShack.

The cash-strapped electronics chain said it’s looking to shutter as many as 1,100 stores, more than a fifth of its locations nationwide, after disclosing a full-year loss that swelled to $400 million.

Fourth-quarter results, which got slammed by a 20-percent revenue drop, “were much worse than we anticipated, and cast serious doubt on RadioShack’s long-term viability in our opinion,” BB&T Capital Markets analyst Anthony Chukumba said.

RadioShack, which lately got attention for Super Bowl ads that featured throwback characters from the ’80s including Hulk Hogan, Mary Lou Retton and sitcom alien ALF, saw its shares slide 17 percent on the news, closing at $2.25.

The stock has been stuck below the $5 range for more than a year and a half as the debt-laden retailer has struggled to right its business.

Industry experts say RadioShack has been hit especially hard by the rise of Web retailers such as Amazon. That’s because the latter are better equipped to carry a wide selection of the gadgets, parts and accessories that had been RadioShack’s bread and butter for decades.

I think that the business is irrelevant,” said David Tawil of Maglan Capital, a New York investment firm. “I don’t see a vision on the future of the business.”

In a Tuesday conference call with analysts, CEO Joe Magnacca made it clear that the company believes that its chain of 5,200 stores is simply too big.

“Within five miles of my home, I have eight RadioShack locations,” said Magnacca, a former Walgreen exec hired last year to help resuscitate the retailer.

Nevertheless, insiders say the company’s plan to close stores has sparked friction with the company’s lenders, which in some cases have taken RadioShack’s leases as collateral.

“After a quarter like this, it’s going to be an uphill battle convincing the banks that exiting stores is a safe bet,” according to one industry source.

On Tuesday’s conference call, RadioShack execs fielded analysts’ questions about the company’s liquidity after it disclosed that some suppliers have demanded letters of credit in exchange for deliveries of fresh merchandise.

For the fourth quarter, RadioShack’s loss widened to $190.4 million — three times the size of its year-earlier loss — as its margins got squeezed by stiff price competition.

Some of the wounds were self-inflicted, execs admitted, as RadioShack discounted some items that were already selling briskly and failed to order adequate stocks of other hot sellers.

Sagging demand for mobile phones has been a nagging problem in recent seasons for electronics retailers industrywide. Still, RadioShack seems to have been hit harder than most, according to Tawil of Maglan Capital.

10654: Radio Sheikh.

“Life-changing promotions” from Radio Shack in Cairo, Egypt…?

From Ads of the World.

9978: RadioShack Needs Shuttering.

Adweek reported RadioShack has selected a new White advertising agency which is actually Grey—that is, Grey New York. Oddly enough, RadioShack’s chief marketing officer left the company last month, and the retailer has yet to identify a successor. This puts Grey in an uncomfortable position; it’s as if they just got married, with the spouse to be named later. Then again, does it really matter? The true problems RadioShack faces will not be solved by a White agency, as evidenced by the photo above. Incumbent Butler, Shine, Stern & Partners’ “The Shack” branding is lost in the overall customer experience. The place continues to feel like a five and dime for pocket-protector-wearing CB enthusiasts.

RadioShack Selects New Creative Agency

Incumbent Butler, Shine declined to defend

By Andrew McMains

The Shack has a new lead agency. The New York office of Grey won RadioShack’s creative account after a review, according to sources.

The WPP agency succeeds Butler, Shine, Stern & Partners on the business. The brand spends an estimated $200 million annually on advertising.

McCann Erickson and Goodness Mfg. were the other finalists in the review, which began in November. Select Resources International in Santa Monica, Calif., managed the search.

Butler, Shine, Stern & Partners of Sausalito, Calif., had worked on the brand since 2009. The incumbent was invited to defend, but ultimately declined.

Media planning and buying efforts were not in play and remain at WPP’s Mindshare.

In an odd coda to the review, Lee Applbaum, RadioShack’s chief marketing officer since 2008, exited the retailer last month. The company has yet to name a successor in that role.

Grey did not return calls, and the Fort Worth, Texas-based RadioShack could not immediately be reached.

9564: RadioShack Seeks New ShitShack.

Advertising Age reported the RadioShack account is going into review. The client has hired a search consultancy to focus on “identifying world-class agencies capable of delivering transformational creative concepts in a highly competitive retail landscape.” Um, right—time to jump through hoops for a third-world gadget store that has failed to transform itself for at least a quarter of a century.

RadioShack Launches a Creative Review

Incumbent Butler, Shine, Stern & Partners Will Defend

By Rupal Parekh

After two and a half years of working with Sausalito, Calif.-based indie shop Butler, Shine, Stern & Partners, RadioShack is scouring adland for a new creative shop.

According to a statement issued by the retailer today, the search, which is being conducted by Santa Monica, Calif.-based consultancy Select Resources International, will focus on “identifying world-class agencies capable of delivering transformational creative concepts in a highly competitive retail landscape.” RadioShack previously used SRI for a search in which Butler Shine emerged the winner, beating Omnicom Group’s DDB, Chicago; Interpublic Group of Cos.’ Deutsch, Los Angeles; and now-defunct indie shop Modernista.

Butler Shine was responsible for developing “The Shack” platform for the electronics retailer in a play to help modernize the brand. According to a company spokesman, “The Shack” branding “will continue to be part of the conversation.”

Said Lee D. Applbaum, executive VP-chief marketing officer for RadioShack Corp., in a statement: “We are tremendously proud of the progress we’ve made in collaboration with our partners at BSSP, energizing our iconic retail brand and igniting fresh conversations with consumers about RadioShack and mobility. Although our brand transformation is far from complete, the needs of the business and demands of the competitive and macroeconomic landscape require a different approach to our creative strategy and execution. Consequently, we must ensure that we are aligned with a partner who can develop and execute retail-centric creative focused ultimately on driving consideration and traffic.”

RadioShack’s overall ad expenses last year were more than $200 million. It remains to be seen whether RadioShack, which has 7,300 locations, will continue to invest the same level in advertising. The retailer had a tough third quarter, reporting that net income plummeted to less than $1 million from $46 million last year.

RadioShack said the winning agency will be responsible for strategic and creative development across all marketing channels, including digital, social, mobile, broadcast and print media. Media-buying and planning duties, which are handled by WPP’s Mindshare, are not in review. The company plans to complete the review process by March 2012 and Butler Shine is expected to defend the business.

Contributing: Natalie Zmuda

8653: Branded Bullshit.

Badvertising in a MultiCultClassics Monologue…

• Denny’s and new AOR Gotham recently launched a “branded entertainment” campaign. Ironically, the work does a poor job of branding and it’s not very entertaining. Denny’s Chief Marketing Officer Frances Allen gushed, “The ‘Always Open’ series utilizes celebrities to draw attention to the kinds of dialogue you’ll overhear all the time at Denny’s—sometimes funny, sometimes heartwarming, but always authentic.” Right. Can’t wait to see the episode featuring a Black celebrity. Given the restaurant chain’s history of racial discrimination, the “authentic” dialogue should be hilarious.

• The Shack should change its name to The Rack—gun rack, that is. A Radio Shack in Montana is offering customers a pistol or shotgun with special Dish Network packages. The storeowner claims that since launching the promotion last October, business has tripled. Ditto the threat of his store being held up by armed robbers with Dish Network.

7468: Is Radio Shack Wack…?

Not sure what to think of the “multicultural” efforts for Radio Shack The Shack. View Oh Snap and Sensei to judge for yourself.

6708: Shacking Up With Nutcases.

Marketing mania in a MultiCultClassics Monologue…

• A Radio Shack customer received a woodshed beating after demanding to speak with the store manager. An employee in Wisconsin went postal on an irate customer, beating her so violently that another customer dialed 911. Wonder how new Radio Shack ad agency Butler Shine will spin this one.

• PETA reneged on its proposal to use convicted dog-killer Michael Vick as a spokesman after the ex-NFL star refused to take a psych test for anti-social personality disorder. Actually, you’d have to be crazy to appear in a PETA ad. After all, the organization has hooked up with celebrities like Naomi Campbell—who ironically ended the relationship because she thought PETA was nuts.