The Wall Street Journal is reporting today that RadioShack Corporation (NYSE:RSH) will close at least 500 stores over the next few months as part of its ongoing reorganization effort. The U.S.-based electronics retailer has been losing ground to rivals for years, and recently secured an $835 million loan to refinance prior debt and fund the reorganization. RadioShack Corporation (NYSE:RSH) is already down to 4,500 stores, having closed more than 1,500 of 6,000-plus outlets it had at its peak a couple of decades ago.
Not known what stores will be closing
Exactly which RadioShack Corporation (NYSE:RSH) stores will be closed in the reorganization has not been announced yet. According to the WSJ article, “It is unclear which of RadioShack’s roughly 4,500 stores will be closed and when exactly the closings will begin, these people said, adding that it isn’t unusual for companies to close stores when going through operational restructurings.”
RadioShack’s New CEO says turnaround will take time
Joe Magnacca took over helm as CEO of RadioShack Corporation (NYSE:RSH) in February 2013, and kept a relatively low profile for the first few months, working behind the scenes to line up the refinancing and reorganization funds. After the $835 million financing led by GE Capital was announced in October, Magnacca stepped up to the plate to announce that he expected the turnaround to take several quarters but offered no substantive details as to his plans.
Super Bowl ad buzz
The RadioShack Corporation (NYSE:RSH) Super Bowl ad making fun of its outdated image was one of the biggest hits of the game, and created significant buzz for the firm. The idea of using 80s icons such as postman Cliff Claven from Cheers as pitchmen was clever and resonated well with the somewhat older demographics of the Super Bowl audience.
RadioShack Corporation (NYSE:RSH) is trading at $2.39, down nine cents, as of 1:45 pm ET this afternoon.