RadioShack To Shut 1,100 Stores RadioShack Corp. could close as many as 1,100 U.S. stores--a fifth of its total--after a sharp drop in sales over the holidays left it with a $400 million loss last year. The deep cuts underscore the difficulty the retailer of gadgets and tech accessories faces adapting to trends in a highly competitive electronics business. The closings will save money but will leave RadioShack with a still-sprawling operation that includes more than 4,000 locations--including nearly 1,000 franchisees--and a challenging fix-it job for Chief Executive Joe Magnacca. In a sign of the level of concerns about the chains cash, RadioShack revealed that some of its suppliers have demanded letters of credit to guarantee theyll get paid. Such obligations now cover more than $67 million of payments, down from about $121 million at the end of 2013. The company said it has enough cash and borrowing ability to cover its needs for the year.
Posted on: Wed, 05 Mar 2014 02:15:00 +0000
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