RadioShack to close ~1,100 stores

[Caliga]

1,100 underperforming stores to be shut down by RadioShack | Business Sun
Business Sun

7:41 PM Wednesday 05 March 2014

   
• It reported net loss of $400.2 million, or $3.97 per diluted share for whole of 2013, compared to net loss of $139.4 million in the previous year

• The firm has been striving to restructure its business by not only improving its operational efficiency but also revamping the assortment of products its carries

• It is now looking to consolidate its store base "into fewer locations while maintaining a strong presence in each market"

WASHINGTON - Electronics retailer RadioShack Tuesday announced plans to shut down 1,100 'underperforming' stores - nearly 20% of its total - in an attempt "to consolidate our store base into fewer locations while maintaining a strong presence in each market', the company stated.

It reported net loss of $400.2 million, or $3.97 per diluted share for whole of 2013, compared to net loss of $139.4 million in the previous year. On an adjusted basis, net loss was $305.8 million, which compares to an adjusted net loss of $60.5 million last year.

During the fourth quarter, the company's net loss was $191.4 million, or $1.90 per diluted share, compared to net loss of $63.3 million last year, the company stated that after closure of 1,100 poorly performing stores, it will continue to have a strong, unmatched presence across the U.S. with over 4,000 stores including over 900 dealer franchise locations.

On an adjusted basis, the retailer stated that its net loss was $129.9 million, which compares to an adjusted net income of $6.8 million last year.

"Our fourth quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues," Joseph Magnacca, chief executive of Radio Shack, said in a statement.

The company's shares, which have fallen by nearly 80 percent over the past two years, fell as much as 19% in early trading in New York on Tuesday.

The firm has been striving to restructure its business by not only improving its operational efficiency but also revamping the assortment of products its carries.

"We have undertaken a comprehensive review of our portfolio from many angles - location, area demographics, lease life and financial performance," it said.

Based on the review the company has decided to shutter 1,100 underperforming stores and is now looking to consolidate its store base "into fewer locations while maintaining a strong presence in each market".

Magnacca did not reveal whether the restructuring and closure of stores would result in job losses.

The company ended the fourth quarter with total liquidity of $554.3 million at December 31, 2013, including $179.8 million in cash and cash equivalents and $374.5 million of availability under our 2018 Credit Agreement.

"Other than letters of credit of $55.0 million at December 31, 2013, the company has not otherwise used the availability under the 2018 Credit Agreement. The company's total debt was $614 million at December 31, 2013, which matures between 2018 and 2019," the retailer stated.

Serious question:  Does anyone still go to RadioShack for anything?  Do they have anything you can't get at Target, WalMart, etc.?

[crazy canuck]

Serious question:  Does anyone still go to RadioShack for anything?

I had the same question in my mind when I saw the thread title.  I didnt actually know they were still in business.

I bought my first computer there way back in the day.

[DGuller]

I just went to RadioShack today.    I was being so good for 18 years, but alas, that streak has ended, and it doesn't look like I'll have the opportunity to top it. 

[jimmy olsen]

Serious question:  Does anyone still go to RadioShack for anything?

I had the same question in my mind when I saw the thread title.  I didnt actually know they were still in business.

They had a Superbowl commercial this year, which surprised a lot of people that thought the same.

[Caliga]

We have a RadioShack in town (the small town I live in, not Louisville) and I've literally never seen anyone in there, ever.  I imagine some old people still shop there who don't realize you can get hearing aid batteries and shit at WalMart now, but that's probably it.

[Ed Anger]

I get my 8" disks there.

[Siege]

Survival of the fittest.
They should go for a different business model.
Or, I would sell it all and buy stocks in Google.
Google will dominate the future.
You guys heard about the new fiber cable google is laying down?

[Caliga]

They should go for a different business model.

What do you suggest they try?

[Savonarola]

Serious question:  Does anyone still go to RadioShack for anything?  Do they have anything you can't get at Target, WalMart, etc.?

I have when doing field work; in a pinch they're a decent source for connectors, components and the like.

[Caliga]

So do they in fact have crap you can't get at WalMart?

[Ed Anger]

They should go for a different business model.

What do you suggest they try?

Lucy Liu sexbots

[Caliga]

Another problem with RadioShack is that their name is pretty dumb for 2014.  They need to change it.

[katmai]

I was looking for a 12volt splitter so could charge multiple things at one time in car, only place i could find it was at local Radio Shack.


That was like at Thanksgiving time, just drove past it and was now a vacuum store.

[Savonarola]

So do they in fact have crap you can't get at WalMart?

I've never gone shopping at Walmart for electronics; but judging from their website I think so.  It looks like Radio Shack has DIY stuff for electronics that Walmart does not.

[Caliga]

Ok, so it sounds like it will actually kinda suck when RadioShack goes under then.