RadioShack to close hundreds of stores

Radio Shack

NEW YORK, Ny — Radio Shack is failing to reboot.

The struggling retailer said Tuesday that it plans to shutter 200 more stores, a further sign of the exodus from brick and mortar electronic shops.

Shares tumbled over 9% after the company reported a quarterly loss that was twice as bad as Wall Street expected.

The stock is down more than 45% this year and has lost 90% of its value over the last five years. At roughly $1.42 per share, it’s tinkering in penny stock territory.

RadioShack CEO Joseph C. Magnacca blamed an industry-wide downturn in consumer electronics and weak demand for the current slate of mobile handset products.

Revenue was down 13% compared to a year ago.

RadioShack’s problems run deep. The company already closed 22 stores in the latest fiscal year.

Still, the retailer isn’t giving up without a fight. Its turnaround strategy includes brand partnerships and the remodeling of 100 stores in an attempt to breath fresh air into a company that many analysts and consumers consider outdated.

The company hasn’t exactly denied the perceptions that it’s out of touch with the modern retail world. It ran a Superbowl commercial poking fun of itself by featuring a 1980s theme.

The ad boosted the stock temporarily, but doesn’t appear to have had a meaningful impact on the company’s bottom line.

Of course, RadioShack isn’t the only consumer electronics chain to suffer. Best Buy share are down over 26% over the last year, despite its own attempts as a turnaround.

4 comments

  • buzz

    Good ole Commy news network gets it all wrong again. On top of the 1,000 stores they plan to close this year they are closing another 173, not 200. Big difference. Earnigs per share missed by 84 pct last qtr that’s why they are shuttering more stores. Its a liquidity game for them just to pay the rent and employees right now. I would expect them to file for bankruptcy by end of year

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