RadioShack calls news of 500 store closings a 'rumor'

"Out with the old, in with the new RadioShack."

That's the promise RadioShack (NYSE: RSH) made in its epic Super Bowl commercial; then came news the chain would be shuttering 500 stores.

Unnamed sources reportedly shared details of the closings with The Wall Street Journal, however, a spokesperson from RadioShack called the story a rumor.

"This is a rumor and we don't comment on rumors and speculation," said RadioShack spokeswoman Merianne Roth.

RadioShack has been in the midst of a massive turnaround effort after reporting declining sales and sinking revenue for seven consecutive quarters. The company raised funds for its restructuring in October, securing $835 million in loans to refinance debt of about $625 million.

Analysts have partly attributed RadioShack's decline to a lack of upgraded branding to digital-savvy consumers, which is why the company's Super Bowl commercial was a big hit. The company made fun of itself, but also hinted at better things to come moving forward.

The Fort-Worth based retailer owns and operates close to 4,500 stores in the U.S.

For more:
-See this Wall Street Journal article
-See this Dallas Morning News article

Related stories:
Can RadioShack re-invent itself, again?
Super Bowl commercials: Carmax, H&M, RadioShack are retail's winners, Amazon, Subway miss the mark
RadioShack reports $112 million loss, confirms new financing
RadioShack seeks funding; makes turnaround effort
RadioShack defends its balance sheet, discourages implications that it's for sale

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