RadioShack to close about 500 stores: WSJ

NEW YORK Tue Feb 4, 2014 12:56pm EST

A man walks past a RadioShack retail store on Market Street in San Francisco, California April 28, 2008. REUTERS/Robert Galbraith

A man walks past a RadioShack retail store on Market Street in San Francisco, California April 28, 2008.

Credit: Reuters/Robert Galbraith

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NEW YORK (Reuters) - U.S. electronics chain RadioShack Corp is planning to close about 500 stores within months, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The struggling retailer, which is due to report results for the fourth quarter later this month, said it could not comment on rumor or speculation.

RadioShack has been working with bankers from Peter J Solomon Co to boost its liquidity and with AlixPartners on its operational turnaround.

Its sales have been in free-fall amid executive departures, strong competition and an image problem. Despite its ubiquitous presence in the United States, analysts say it has not done enough to transform itself into a destination for mobile phone shoppers, nor has it become hip enough to woo younger shoppers.

Chief Executive Joe Magnacca, who took the company's helm in February 2013, has said he expected the turnaround to take several quarters.

(Reporting by Dhanya Skariachan; Editing by Dan Grebler)

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Comments (2)
Kahnie wrote:
RS also has few products that work and it’s staff is not consumer oriented. They only push the high end products and when you ask them the particulars inside of a box, they look at the box and read it. It’s been this way for at least 20 years.

Feb 04, 2014 1:11pm EST  --  Report as abuse
AdoubtR2 wrote:
I will be glad to see this mis-managed Franchise disappear along with others that over-price their goods and “services” and seem to know little about customer-oriented services and employee training. Perhaps another will materialize that is better managed.

Feb 05, 2014 10:05am EST  --  Report as abuse
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