Hard on the heels of Federated Group's purchase by computer maker Atari, three of the troubled consumer electronics retailer's top executives have resigned.
They are Wilfred Schwartz, 59, who was chairman and is expected to become an Atari director; Keith Powell, 42, president, and Michael Pastore, 38, senior vice president of operations. The three apparently tendered their resignations from the City of Commerce company Monday.
Garry Tramiel, a son of Atari Chairman Jack Tramiel, has been named president of Federated Group, although it was not immediately clear whether the appointment is temporary. Jack Tramiel, reached at his Sunnyvale office, declined to confirm the resignations or the appointment.
One industry observer said that, while Schwartz's departure was not a surprise, it had been expected that Powell would remain. However, the observer, who asked that he not be identified, criticized the company's management, noting: "Look at how they just handed a beautiful business over to Circuit City. With zero name recognition, Circuit City took over top market share that had been held by Federated Group for many years."
Atari's acquisition of the money-losing Federated Group follows a rapid expansion by the retailer, which now has about 65 stores in California, Arizona, Texas and Kansas. The company has suffered particularly in Texas because of the energy-related recession and in Southern California because of intense competition.