RadioShack To Close Nearly 500 Stores
RadioShack just spent beaucoup bucks on a Super Bowl commercial but there latest numbers report (-4.84%) suggest that money was probably better served collecting interest in an emergency account.
They are planning to shut down 500 of its stores to stop their financial bleeding, per a report from The Wall Street Journal.
The retailer has struggled to reverse a string of losses deepened by a sales strategy focused around smartphones, which failed to improve revenue over the past two years.
RadioShack executives last year suggested the company would resist downsizing its store footprint as they focused most of their attention on reinventing the brand’s image. Stores might close in one section of a neighborhood to set up shop in more highly trafficked locales, but the number of outlets would stay the same, they had previously said.
It is unclear which of RadioShack’s roughly 4,500 stores will be closed and when exactly the closings will begin, these people said, adding that it isn’t unusual for companies to close stores when going through operational restructurings.
It was reported that in October 2013, the chain borrowed $835M worth of loans to pay down $625 worth of debt. Any third grade mathematician can see the improbability of breaking in the black when customers aren’t coming into your stores.
Keep it 100, ladies and gents. When’s the last time you bought anything from “The Shack” other than batteries?
The defense rests, your Honor.