500 Radio Shack stores will be closing in the next few months. Consumerist reported Feb. 4 that no specific locations or regions have been revealed on which of the 4,500 stores will close down.
The closures are intended to "re-open in higher-traffic areas, thus leaving the total number of stores the same," according to the report. They noted that the Wall Street Journal published a report stating that the closures are thought to be "more permanent."
Radio Shack is $625 million in debt. They have $835 million in loans to get themselves out of being so deep in the red. Part of the reason for 500 Radio Shack stores closing has to do with their "dated" image and merchandise being replaced by high-tech smartphones. Amazon has also dropped their partnership with Radio Shack last September.
Is the fact that 500 Radio Shack stores are closing mean more will shut down over time?