RadioShack not closing 1,100 stores

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.

For more:
-See this Wall Street Journal article

Related stories:
The 'new' RadioShack features in-store mobile integration
RadioShack opens two new concept stores  
RadioShack to close 1,100 stores amid plummeting sales
Can RadioShack re-invent itself, again?
RadioShack reports $112 million loss, confirms new financing

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.