Electronics retail pioneer RadioShack is preparing to shut down 500 stores as part of a continued restructuring effort according to people familiar with the matter as reported by the Wall Street Journal.
The company currently operates around 4,500 stores although it’s unclear which locations will be the first to go and when it’ll take place. 500 fewer stores would put the total around 4,000 which is about 1,000 less than the more than 5,000 stores in existence a decade ago.
The sources added that it isn’t unusual for a company going through restructuring to close stores.
The news comes just days after the Fort Worth, Texas, retail chain aired one of the most popular ads during Super Bowl XLVIII. The commercial, which used a bevy of ‘80s-era entertainment personalities to poke fun at the store’s outdated image, boosted share value by seven percent the next morning.
The electronics chain has been struggling for quite some time now and a sales strategy focused on smartphones has failed to improve revenue over the past couple of years. As such, RadioShack was forced to take out $835 million in loans last October to refinance around $625 million in debt. The remainder of those funds was set aside for restructuring efforts.
RadioShack declined to comment on the matter, saying it’s their policy not to comment on speculation or rumor. Share value is down nearly five percent on the news as of writing.