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UPDATED: RadioShack to close up to 1,100 stores

From Staff and Wire Reports
March 04. 2014 7:21PM

RadioShack Corp. plans to close up to 1,100 unprofitable stores and said Tuesday that its sales fell 20 percent in the holiday quarter.
The company reported its second consecutive annual loss. After the store closings, RadioShack will have about 3,100 company-operated stores and 900 franchise stores.
The store closings are expected to be in all markets but RadioShack hasn't released a list of the stores that will close.
The company is trying to consolidate its business into fewer locations "while maintaining a strong presence in each market," said CEO Joe Magnacca.
The store closings weren't a surprise, but the number of stores is higher than analysts expected. Sources confirmed in January that the company may be closing more than 500 stores this year.
Radio Shack has about 30 locations across New Hampshire, as far north as Colebrook and many throughout southern New Hampshire, according to the store locator on its website.
The store at the Mall of New Hampshire closed in late January, according to a clerk at the Radio Shack in a South Willow Street shopping plaza. The clerk, who asked to not be named, said the mall Radio Shack had mostly browers, while the shopping plaza customers come in with a purpose.
"The mall store was slow," said the clerk, who was moved to the plaza location when the mall store closed.
The Fort Worth, Texas-based consumer electronics chain also said it has renegotiated its debt.
RadioShack reported a fourth-quarter net loss of $191.4 million, or $1.90 a share, in the period ended Dec. 31, compared with a net loss of $63.3 million, or 63 cents a share, a year ago.
Total sales fell to $935.4 million from $1.17 billion a year ago. Same-store sales fell 19 percent.
Analysts surveyed by Thomson Reuters had forecast a loss of 15 cents a share and a sales decline of 13.9 percent to $1.12 billion.
A holiday season of lower customer traffic; intense discounting, particularly in consumer electronics; soft mobile phone demand; and a few operational issues combined to generate higher losses, said Magnacca. He was hired a year ago to turn around the company after RadioShack in 2012 reported its first annual loss since the 1980s.
At the Manchester plaza store, customer Lea Tuyisabe said she would not want to see the store close. She purchased her mobile phone at the location and can pay her phone bill there in cash.
"I always pay it here," Tuyisabe said.
Marc Hayward of the New Hampshire Union Leader contributed to this report.


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