During the report of their 2013 fourth quarter results RadioShack announced that the company would be closing 1,100 of its worst performing stores out of its 4,000 strong chain.
During the results RadioShack revealed that it had lost $191.4 million in that quarter alone with revenue declining 20% to just $935.4 million.
Even with the help of its Super Bowl advert shown below RadioShack, explains that it needs to shut the stores to try and get its business back on track. Joseph C. Magnacca, RadioShack CEO explained :
“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,”
“Even in this environment, we’re continuing to make progress on the five pillars of our turnaround plan: repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility.”
RadioShack is currently in the process of trying to rebrand itself into a “Do It Together” store, but only time will tell as to whether the company is able to do this effectively before cash runs out.
Source: Tech CrunchFiled Under: Gadgets News, Technology News, Top News