RadioShack To Close 1,100 Stores
Top Spots For Shopping In South Florida
FORT WORTH, Texas (CBS) – Approximately 1,100 under-performing RadioShack stores will close their doors this year.
The company made the announcement Tuesday but didn’t identify which stores would be closed. The electronics retailer said they would consider location, area demographics, lease duration and financial performance when making their decision on whether a store would remain open.
The company also reported wider fourth quarter losses over the critical holiday season.
For the period ended Dec. 31, the electronics retailer lost $191.4 million, or $1.90 per share. That compares with a loss of $63.3 million, or 63 cents per share, a year earlier.
Analysts expected a loss of 16 cents per share. Revenue declined to $935.4 million from $1.17 billion. Sales at stores open at least a year fell 19 percent on weaker traffic and the soft performance of the company’s mobility business.
CEO Joseph Magnacca said the latest quarter’s performance was hurt by increased promotional activity, particularly in consumer electronics, along with a soft mobility marketplace and operational issues.
The planned closings will leave RadioShack with more than 4,000 stores.
(©2014 CBS Local Media, a division of CBS Radio Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. CBS News contributed to this report.)