If there is one executive on this list that deserves your sympathy, it would probably be Ron Cuthbertson of Intertan and The Source, formerly Radio Shack.
This year, Cuthbertson was caught in your classic no win situation. As the CEO of The Source by Circuit City he ran a quality operation and delivered consistent profitable quarters. The Source has a record of profitability. But that was not the case for Circuit City in the U.S. The economy took a turn for the worse, consumer confidence declined and as a result, Circuit City tanked and filed for bankruptcy protection, and the Canadian operation was forced to follow suit.
Following the voluntary commencement of bankruptcy proceedings by Circuit City and certain of its U.S. subsidiaries in November 2008, The Source commenced its own voluntary proceeding under the Companies’ Creditors Arrangement Act (CCAA).
Bell acquired substantially all of the assets of The Source for $135 million – which approximates the current inventory value of the retailer – plus adjustment for working capital. Cuthbertson was always Bell’s choice to lead the new independent retail chain of more than 750 stores.
Acquiring The Source turned out to be a great acquisition for Bell. Seemingly overnight, Bell grew its national distribution in retail wireless. The price, as it turned out, was nothing but a steal as it would have cost a lot more to start from scratch.