RadioShack Axes 1,100 Stores; Others May Follow

FORT WORTH—Following double-digit quarterly sales declines in the fourth quarter and mounting losses year over year, Radio Shack Corp. said Tuesday it would close as many as 1,100 RadioShack stores, about 20% of its total, with the possibility of more closings in the future. CEO Joseph Magnacca says that even after the closings announced Tuesday, “We will continue to have a strong, unmatched presence across the US with over 4,000 stores including over 900 dealer franchise locations.”

The electronics retailer said the locations that will be shuttered, subject to the consent of its lenders, were selected based on location, area demographics, lease life and financial performance. It did not identify these locations, which follow on two consecutive years of closing about 100 stores per year.