RadioShack, one of the most popular electronic and gadget store, highly popular for their DIY kits, is shutting down almost 1,100 stores.
According to a report on Bloomberg the brand which is trying to keep up its reputation has shown a loss in sales and the chain finally announced plans to close down about a fifth of its stores.
The fourth-quarter revenue has declined by almost 20 percent, the Fort Worth, Texas-based company said. According to data compiled by Bloomberg, analysts anticipated it to be around $1.12 billion on average.
Bloomberg also reported that results showed Joe Magnacca, CEO of RadioShack, hadn’t succeeded in rejuvenating the almost-century-old chain. They have been retooling their stores to compete with rivals such as Amazon. RadioShack finally decided that it will shut as many as 1,100 stores that are underperforming, which leaves around 4,000 locations in the US.
“The shares fell 17 percent to $2.25 at the close in New York, the biggest decline since Oct. 22, when RadioShack reported a wider-than-estimated third-quarter loss. The stock has dropped 46 percent since its 2013 closing peak of $4.19 in May,” reported Bloomberg.
