Radioshack Bleeding, Will Close 1 in 5 Stores

Company announces dismal holiday sales numbers
By Kevin Spak,  Newser Staff
Posted Mar 4, 2014 9:55 AM CST
Radioshack Bleeding, Will Close 1 in 5 Stores
One of Radioshack's new 'concept stores' is seen in this October promotional photo.   (PRNewsFoto/RadioShack Corporation)

Radioshack released an absolutely grisly quarterly report today, and on its heels came plans to close as many as 1,100 stores—or about 20% of its total, the Wall Street Journal reports. The company said it had lost $191.4 million over the holiday quarter, a huge jump from its $63.3 million loss a year earlier, on a 20% dip in revenue. Overall, it lost $400 million on the year. While some store closings had been expected, the actual number is more than twice the 500 indicated in previous reports.

Radioshack blamed the results on lower shopper traffic, lower phone and tablet sales, aggressive sales at its competitors, and "a few operational issues." Its stock plunged 28% in early trading. "The company's results were much worse than we anticipated, and cast serious doubt on RadioShack's long-term viability in our opinion," one analyst tells Reuters. (More RadioShack stories.)

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