RadioShack Slumps on Report About Store Closing NegotiationsJames Callan
RadioShack Corp. slumped 17 percent following a report that negotiations with the retailer’s lenders are hindering plans to close stores.
The shares closed at $1.41 in New York, the lowest price since at least July 1980.
Disagreements between RadioShack and its lenders over how many stores should be closed is “complicating” turnaround efforts, the Wall Street Journal reported yesterday. The retailer, which last month said it would shut 1,100 stores, is currently targeting 200 stores, the paper said, citing people familiar with the matter.
RadioShack’s decision to publicly announce the store closing plan without approval from its lenders has created additional tension, the newspaper said. Some lenders are proposing that as many as 2,000 stores be closed, the Journal said.