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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

(Newser) – 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.

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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. (Read more RadioShack stories.)

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