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: Management Problems
The constantly changing management did not help the company's efforts to turn itself around. From 2005 to 2014, the company changed its chief executive officers seven times. Joseph Magnacca joined RadioShack in 2013 as its CEO to speed up the turnaround. The company set a goal of restoring profitability by 2015 with a significant store, and product revamps changes in compensation structure, and aggressive marketing campaigns. However, as Magnacca's effort started rolling out, the results got worse due to rising costs, constantly shifting management orders on short notice, and confusing commission structures. The workers' morale and the company's profits slipped even further. 5. Financial Missteps
Because RadioShack had experienced negative earnings since 2012, the company needed significant capital infusions to stay solvent. In October 2013, RadioShack was able to obtain a $585 million line of credit from GE Capital and the $250 million term loan from Salus. The $250 million term loan came with the condition that RadioShack could not close more than 200 stores per year without Salus' consent.