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RadioShack to Close 500 Stores

No word on where they will be, or how many will be in Wisconsin.  Guess this more or less proves the theory that the $4 Million they laid down for Sunday’s Super Bowl XLVIII ad was a last grasp at attention for the brand.

Anyone honestly thinking that not spending the money would have saved these stores for anything longer than another week or so (RadioShack has revenues in the $3 to 5 Billion range) is kidding themselves.

U.S. electronics chain RadioShack Corp is planning to close about 500 stores within months, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The struggling retailer, which is due to report results for the fourth quarter later this month, said it could not comment on rumor or speculation.

RadioShack has been working with bankers from Peter J Solomon Co to boost its liquidity and with AlixPartners on its operational turnaround.

Its sales have been in free-fall amid executive departures, strong competition and an image problem. Despite its ubiquitous presence in the United States, analysts say it has not done enough to transform itself into a destination for mobile phone shoppers, nor has it become hip enough to woo younger shoppers.

RadioShack has been struggling for some time.  Heck, there were rumors of the company filing for bankruptcy protection in July 2013.  The company fought back against these rumors saying it was more likely to “restructure.” 

If they are indeed going that route, than the Super Bowl ad would likely be “Step 1” in its attempt at re-branding itself and its image.

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