RadioShack (NYSE:RSH) said Thursday it will not close 1,100 stores as planned after it failed to reach an agreement with lenders.
RadioShack's existing credit agreement allows it to close only 200 stores per year and up to 600 over the life of the agreement between now and 2018. The company had been negotiating to nearly double that number.
"While the company may continue to have discussions with its lenders regarding the proposed store closure program, the company is continuing with a plan to close fewer stores," RadioShack said in a Securities and Exchange Commission filing late Thursday afternoon.
With the store closures halted, RadioShack will pursue other cost reduction measures, but didn't divulge any details.
In March, RadioShack disclosed plans to close up to 1,100 of its 4,300 company-owned stores after posting disappointing holiday sales and a $191.4 million fourth-quarter loss. In its last fiscal year, RadioShack reported a loss of $400 million, a substantial slide from its loss of $139 million the year before.
-See this Wall Street Journal article
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