Electronics retail chain RadioShack is about to close 1,100 out of 4,000 outlets across the US. The announcement came after the company posted the massive losses it incurred over 2013's last quarter, wrote TechCrunch.
For 2014's first quarter, RadioShack posted a $191.4 million loss. The firm also said its revenue took a 20% drop to $935.4 million, the report detailed.
Chief Executive Officer (CEO) Joseph C. Magnacca 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."
According to Reuters, the sales of RadioShack have been steadily dropping as the company has been bombarded with strong competition and executive shakeups. The electronics seller has been trying to increase its liquidity and address its image problem, the report stated.
However, some analysts think that RadioShack's turnaround efforts are all in vain, Reuters reported.
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