Can RadioShack be long for this world?
Posted: Wed Jun 11, 2014 7:35 am
RadioShack is bleeding money, will close 200 stores
By Jesse Solomon
NEW YORK (CNNMoney) — RadioShack is failing to reboot.
The struggling retailer said Tuesday that it plans to shutter 200 more stores, a further sign of the exodus from brick and mortar electronic shops.
In March, the company said it would close as many as 1,100 of its more than 4,000 shops, but its lenders limited the closures to just 200 stores. RadioShack (RSH) will focus instead of remodeling some of its existing properties and rebranding.
Shares tumbled over 10% after the company reported a quarterly loss that was twice as bad as Wall Street expected.
The stock is down more than 45% this year and has lost 90% of its value over the last five years. At roughly $1.38 per share, it's tinkering in penny stock territory.
RadioShack CEO Joseph C. Magnacca blamed an industry-wide downturn in consumer electronics and weak demand for the current slate of mobile phones.
Revenue was down 13% compared to a year ago.
MORE
By Jesse Solomon
NEW YORK (CNNMoney) — RadioShack is failing to reboot.
The struggling retailer said Tuesday that it plans to shutter 200 more stores, a further sign of the exodus from brick and mortar electronic shops.
In March, the company said it would close as many as 1,100 of its more than 4,000 shops, but its lenders limited the closures to just 200 stores. RadioShack (RSH) will focus instead of remodeling some of its existing properties and rebranding.
Shares tumbled over 10% after the company reported a quarterly loss that was twice as bad as Wall Street expected.
The stock is down more than 45% this year and has lost 90% of its value over the last five years. At roughly $1.38 per share, it's tinkering in penny stock territory.
RadioShack CEO Joseph C. Magnacca blamed an industry-wide downturn in consumer electronics and weak demand for the current slate of mobile phones.
Revenue was down 13% compared to a year ago.
MORE