RadioShack to shutter 1,100 stores (Update)

Mar 04, 2014

US consumer electronics retailer RadioShack said Tuesday it would close up to 1,100 stores, one fifth of its total, in an effort to turn the struggling chain around.

Chief executive Joseph Magnacca said the move was necessary after tough competition and lower traffic left the company with a $191 million loss in the fourth quarter, triple the year before, and a $400 million loss for all of 2013.

The closures would cut the company's stores in the United States to around 4,000, including franchise locations; RadioShack did not say how many jobs would be affected.

Challenged by other retailers and online sales, RadioShack has suffered falling turnover and a shrinking customer base.

The store cuts were far deeper than media reports in early February that RadioShack was planning 500 closures. RadioShack shares plunged 12.2 percent to $2.39 in late-morning trade on the New York Stock Exchange.

Total revenues fell 11 percent to $3.4 billion last year, and were down 20 percent in the fourth quarter, the crucial holiday shopping period, the company said.

"Even in this environment, we're continuing to make progress on the five pillars of our turnaround plan: repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility," said Magnacca in a statement.

Explore further: Taiwan's HTC forecasts first-quarter loss

add to favorites email to friend print save as pdf

Related Stories

Taiwan's HTC forecasts first-quarter loss

Feb 10, 2014

Taiwan's struggling smartphone maker HTC on Monday forecast a first-quarter net loss of up to Tw$3.1 billion ($102.4 million) due to weak sales of new flagship products.

Best Buy reports 1Q loss on restructuring costs

May 21, 2013

(AP)—Best Buy Co. on Tuesday reported a loss for its fiscal first quarter as it sold its stake in Best Buy Europe and works on a turnaround plan that includes cutting costs and closing some stores.

Dutch telecom KPN to cut 1,500 jobs

Feb 04, 2014

Royal KPN NV, the Dutch telecom company partly owned by Mexican billionaire Carlos Slim, says it will cut at least 1,500 jobs—5 percent of staff—by 2016 as its fourth quarter sales fell and losses worsened.

Novartis Q4 net profit rises to $2.0 billion

Jan 29, 2014

Swiss drug maker Novartis AG reported a 2 percent rise in fourth-quarter net profit Wednesday, helped by delays in generic competition to its blockbuster drugs.

Recommended for you

Nokia turnaround since handset unit sale continues

6 hours ago

Nokia appears to have turned around its fortunes after the sale of its ailing cellphone unit to Microsoft, reporting a third-quarter net profit of 747 million euros ($950 million), from a loss of 91 million euros a year earlier. ...

Yahoo CEO defends strategy in face of criticism

6 hours ago

Signaling her reign has reached a pivotal juncture, Yahoo CEO Marissa Mayer is trying to convince restless shareholders that the long-struggling Internet company is heading in the right direction.

Sk Hynix logs all-time high Q3 earnings

7 hours ago

SK Hynix, the world's second-largest memory chip maker, reported Thursday a record high quarterly net profit for the three months to September on strong sales and currency earnings.

User comments : 0