RadioShack Planning More Store Closures, Layoffs To Avoid Collapse

[RKP5637]

As usual in corp. America, employees to be sacrificed because of the inaptness of the executive regime who often go off loaded with cash while the rest go into destitute. This has been coming on for a very long time, but management just seemingly could not comprehend what was going on IMO. I feel sorry for the work-a-day employees in this dinosaur.

http://www.huffingtonpost.com/2014/12/11/radioshack-earnings_n_6302968.html?ir=Technology

RadioShack announced a last-ditch attempt to avoid bankruptcy on Thursday morning, but industry observers think the iconic electronics seller's plan may be too little, too late.

The plan involves closing hundreds of stores, cutting budgets and laying off retail workers and employees in corporate headquarters, the company said in an announcement. RadioShack reported a loss of $161 million for the three-month period that ended November 1. That's 18 percent more than the $136 million loss it suffered over the same period last year.

The company hopes to save more than $400 million with the slash-and-burn tactics. More than a quarter of the planned cuts, $105 million, are being made to the marketing budget -- the very same one that just brought us a holiday commercial featuring 'Weird Al' Yankovic.

RadioShack has struggled to stay relevant and keep its stores open, despite its archaic name. The 93-year-old company, which operates roughly 4,000 stores, has closed 175 locations so far this year, and wants to shut down nearly 1,000 more.

"The majority of the savings are in our control and are already in process," chief executive Joe Magnacca said on a conference call with analysts on Thursday.

Magnacca did not specify the number of planned layoffs, but said 50 percent of the retailer's "field managers" will be cut, saving $17 million annually. Through staff cuts at the corporate level, Magnacca expects to save an additional $18 million.

RadioShack has around 25,000 employees in total.

But many think these efforts will be for naught.

"RadioShack is a corpse being propped for display on malls across America this holiday season," Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors, told The Huffington Post. "Cost cuts won't change one key, fundamental thing: The stores are too small to properly showcase the tech of today."

[TransitJohn]

1. That chain is way past its prime, it doesn't even know what it is anymore

My last couple trips were fruitless. The first, I needed some electronics parts to fix some classic stereo equipment. The one I went in to didn't even carry transistors or relays anymore. I thought to myself, "isn't this radio shack?" The salespeople didn't even know what I was talking about, but wanted to sell my a cell phone contract with AT&T. The second time, I needed some batteries and Radio Shack was the closest store to me. The salesperson at the register insisted on an email address and phone number. I declined to provide them. The salesperson literally wouldn't sell to me without them, so I left the batteries on the counter and walked out. Haven't been back inside one in 8 years or so.

[RKP5637]

2. Pretty much my experience with them too. They are clueless, inapt and often rude ... that, combined

with the chain floundering on what they are and their product line. It's just an unpleasant experience and extends far beyond just their products. I've been in electronics a very long time. I used to go there in a pinch for components, but anymore it's far easier to order online, expansive selections and stuff is here quickly and there is no BS involved with the transaction like there is at Radio Shack. And, I don't get an attempt at selling me a cell phone pushed on me ... and no battery pushing!

The internet is full of recounts like this, but their management just seems blind to it all.

[ellenrr]

3. I love my Radio Shack. I always go there first.

I prefer it 10,000 times to going into a box store and wondering around and no help. With dozens of people, dozens of products...

At Radio Shack, there's usually only or 2 other customers.
I get their undivided attention.
They treat me so well, even if I'm going in for a $3.00 item.

Just yesterday I found there some att&t trimline's to replace the phone that just broke.
corded, cordless, with or without answering machine. only $20.00.

yea!

[RKP5637]

5. Yes, some are excellent! I think a lot of it has to do with the local store manager, some are

outstanding.

[ellenrr]

7. I will be sad if they close this one. Sad for the employees,

and sad for me.
It is so convenient not to have to fight traffic and crowds.

they do push batteries, but not aggressively, and I just decline.

[Bad Thoughts]

4. When you pay employees peanuts, firing them saves you peanuts. eom.

[hobbit709]

6. they collapsed years ago, these are the last dying twitches.

[dembotoz]

8. just found out my local rs is gone- no sale--nothing just gone

always went there during xmas shopping

my sons thought the electronic toys were cool

[pstokely]

9. not even Weird Al can save Radio Shack

Radio Shack is just an overpriced electronics accessory store with a few toys, they'd still have transistors if they were even stuck in the 80s

[Omaha Steve]

10. There is an Omaha location on 36th & L St that is always busy

It is in a high Hispanic area and they do support it.

[RKP5637]

11. They could scale back tremendously and service niche markets as many people/areas

do like them if they had good management and a different paradigm, but they have so much debt overhead that's likely impossible IMO ... and at the same time too much debt IMO to do the significant expansion needed to be a major player again. I think they're trapped in a downward spiral.