FORT WORTH, Texas, March 4 (UPI) -- RadioShack announced Tuesday that it will shutter close to 1,100 stores, on the back of dropping profits and lackluster sales that dropped 19 percent in the last quarter.
The closures will be in the U.S., and come as the company struggles to reinvent itself in a changing consumer electronics market. RadioShack reported a loss of $191.4 million for the fourth quarter, down from a loss of $63.3 million during the same period last year. This takes its annual loss to $400 million as compared to a loss of $139 million in 2012.
"Our fourth quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues," said Joseph Magnacca, chief executive officer of RadioShack.
Revenues dropped below a $1 billion to $935.4 million in the fourth quarter as a result of weak holiday sales. The proposed store closures will cut the number of stores by a fifth, leaving around 4,000 stores and franchises.
The company has tried to revive its fortunes by hiring Magnacca, from Walgreens, in February 2013. Magnacca was tasked with turning around the company but that doesn't seemed to have worked as the company's financial health continues to deteriorate.