Report: RadioShack preparing to close about 500 stores
The Wall Street Journal is reporting that RadioShack is preparing to close about 500 stores in the coming months as it continues to restructure its operations.
The story, which quotes people familiar with the matter, says it's unclear which stores will be closed and when the closing will begin. But it's not unusual for retailers to announce store closing early in the year, after the holiday returns come in. The chain has about 4,300 company-owned stores.
RadioShack said it does not comment "on rumor or speculation."
On Wall Street, the news sent RadioShack shares down by 10 percent, or 26 cents, to $2.23 about an hour before the close.
A new management team led by Joseph Magnacca, who was hired from Walgreens about a year ago, is working to turn around the consumer electronics retailer, which has lost money for seven straight quarters. Magnacca has opened a series of concept stores, trimmed inventories, reorganized store displays and arranged new financing.
He has also launched a new marketing campaign, including a well-received Super Bowl ad using 1980s celebrities to highlight the efforts to refresh the outdated brand.
RadioShack expects to report fourth-quarter results later this month.
-- Steve Kaskovich