Title: 5 Reasons Why RadioShack Went out of Business
Headings: 5 Reasons Why RadioShack Went out of Business
5 Reasons Why RadioShack Went out of Business
1. High Store Concentration
2. Online Competition
3. Product Concentration
4. Management Problems
5. Financial Missteps

Content: 5 Reasons Why RadioShack Went out of Business
Business Company Profiles
5 Reasons Why RadioShack Went out of Business
FACEBOOK
TWITTER
LINKEDIN
By
Full Bio
Andriy Blokhin has 5+ years of professional experience in public accounting, personal investing, and as a senior auditor with Ernst & Young. Learn about our editorial policies
Andriy Blokhin
Updated Apr 28, 2020
In February 2015, RadioShack (RSHCQ), a renowned electronics store, filed for Chapter 11 bankruptcy protection following many financial and operational missteps. The company had too many stores that cannibalized revenues from each other and generated losses. RadioShack failed to adapt and stay relevant when most electronics sales shifted online, and the retailer was stuck in brick-and-mortar locations only. By 2013 to 2014, RadioShack had a high sales concentration coming from cellphones, which accounted for over 50% of the total sales and generated poor profit margins. The company frequently changed its management and direction for the turnaround. In addition, RadioShack made a financial mistake by taking a loan from Salus Capital in 2013 that required the lender to close no more than 200 stores a year. 1. High Store Concentration
In 2014, RadioShack operated about 4,300 stores in North America. However, there were many stores that were located too close to each other.