RadioShack chief executive David Edmonson resigned yesterday after failing to fight off allegations that he lied on his CV.

Edmonson claimed two degrees, including one in theology, but local paper the Fort Worth Star and Telegram found that although he had attended the Pacific Coast Baptist Bible College for a couple of terms he never received a degree.

Claire Babrowski will take over as acting chief executive while a new chief is found. A firm of headhunters has been hired to find a permanent replacement. Babrowski will run RadioShack's turnaround strategy until that replacement is found - internal and external candidates will be considered. The retailer intends to close one in ten stores in an attempt to stem the 60 per cent fall in earnings it suffered in the fourth quarter.

Edmonson said in a statement: "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."

More from the Fort Worth Star here.