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RadioShack Closing 480 Units

FORT WORTH, TX-The consumer electronics retailer says its will close 480 underperforming stores as part of its turnaround efforts.

By Jennifer D. Duell | Updated on April 24, 2006

FORT WORTH, TX-RadioShack Corp. has closed 40 stores this year and is targeting a total store closure of 480 units. The consumer electronics retailer will suffer charges of $50 million to $90 million related to its store closings, said RadioShack CFO David Barnes during the chain’s first quarter earnings conference call.

The chain has been struggling to deal with a couple of major hits in the past few months including a switch in its wireless phone service providers, which has hurt sales of the products, and the unexpected resignation of ehief executive David Edmondson.

During the first quarter, profits plunged 85% due to weak wireless sales and inventory write-downs. Earnings fell to $8.4 million, or 6 cents per share, from $55 million, or 34 cents per share, for the same period last year. The poor first-quarter performance follows an equally disappointing fourth quarter during which earnings dropped 62%.

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