is Radio Shack finished?

[Martin Z.]

http://blogs.wsj.com/moneybeat/2014/06/20/radioshack-under-1-the-clock-is-ticking/

[Joel Owens]

Radio shack has been dead for years. They have tried closing down stores and redoing existing ones but it's failing.

I have know about their decline for years. It's part of my job with clients to know what businesses are doing what when they purchase strip centers.

[Martin Z.]

I meant, closing all its doors for good?

[Joel Owens]

I think so unless a company comes in for a cheap buyout and then the creditors will have to agree.

Looks like BK is in their future. If they could close down stores with low sales and high lease payments they could shore up the books some. The problem is they are legally obligated on those lease and landlords will not let them out. Now if there are sub-lease agreements where Radio Shack can close a store and let another tenant go in there and just pay a portion of rent until primary lease term ends then that is a good strategy. Yes they no longer have stores sales there and usually will pay a portion of the rent. Say rent is 3,000 a month but the other tenant they find is 2,000 a month. They have to pay 1,000 difference until their primary lease term ends to landlord. They still save on employee costs, utility costs, etc. so generally come out ahead closing a losing store.

It's really all in how their debt requirements are structured and the lease as to whether they have one hand tied behind the back, both hands, or hogtied on the floor with nowhere to go.

[Martin Z.]

Great response @Joel Owens

[James Wise]

I managed a Radio Shack in Ohio back in 2009. It was dead then. The company was ran very very poorly. Company wide it was running somewhere near a 120% turnover rate.

[Account Closed]

I hope its gone, im sick of getting interrogated every time i buy something in that place

[James Wise]

Originally posted by @Account Closed:

I hope its gone, im sick of getting interrogated every time i buy something in that place

 what you don't need 5 cell phones to go with your watch battery?

[Brad S.]

Originally posted by @Account Closed:

I hope its gone, im sick of getting interrogated every time i buy something in that place

You just need to tell them you are looking for a capacitor or some other small electronic part.  They'll surely leave you alone.

I don't think there is much hope for Radio Shack.  They really offer a little bit for nobody.  They have abandoned the hobby person and tried to become a small Circuit City or Best Buy.  We know how Circuit City turned out.  Best Buy is not too far behind.

[Matt R.]

It is a shame. I bought my first hand held cb radio from shack. It was an institution and I held stock back when they paid dividends. Hopefully they can salvage something here. I could have fixed Radio Shack and it is insane they could not figure it out.

thanks,

Matt

[Joel Owens]

I remember as a child my parents bought me a Tandy computer. I remember the salesman saying they are never going to get above 512k because it's not possible now or in the future............... : )

[Brian Mathews]

I've got a Radio Shack a few minutes from my house. I'll go in there and buy things on occasion. Its easier than going to a huge box store, finding place to park, walking across a parking lot to get into huge store, trying to find what I need in said store, then waiting in line for 15 minutes to pay for it. I've bought a mouse, speakers and case for phone, USB cord for computer and the like. They are the convenience store of basic electronic adds on.

[Joel Owens]

They are getting crushed by places like Fry's and Tiger Direct.

[Rick H.]

I'm guessing Tandy poached corporate 'talent' from Southland (7-11) at one time.

I've been a reluctant customer since around 1969 when the closest store was 30 minutes away in Anaheim, CA. I say reluctant in the same spirit that no one intends to eat at Denny's but merely ends up there.

[Daniel Miller]

@Rick H. Good one!

I don't think I've been in Radioshack since the late 1990s...they were cool back then right?