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(CNN)   Radio Shack is in such bad shape, it doesn't even have the money to close 1,100 stores. No, this is not a repeat of the 2007 Onion article   (money.cnn.com ) divider line
    More: Obvious, Radio Shack, Radioshack Corp., credit rating agency  
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2554 clicks; posted to Business » on 01 Aug 2014 at 1:34 PM (1 year ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-08-01 11:02:56 AM  
oh great. NOW where will I buy 70's-era electronics?
 
2014-08-01 11:32:12 AM  
I used to love RS when I was a kid. You could buy electronic components and build kits, it was so much fun for electronics geeks. Goodbye, old friend. :(
 
2014-08-01 11:38:37 AM  

show me: I used to love RS when I was a kid. You could buy electronic components and build kits, it was so much fun for electronics geeks. Goodbye, old friend. :(


Hell yes!  Those little mini-reference books, breadboards, NE555 timers, 500 in 1 kits.  Last time I was in a Radio Shack none of those things were there, it turned into a cell phone store it seems.

/raised on Tandy computers
 
2014-08-01 12:01:10 PM  

nekom: Last time I was in a Radio Shack none of those things were there, it turned into a cell phone store it seems.


Was in my local Radio Shack to get a replacement DC power plug a couple of weeks ago.
$3.49 for a bag of 2.
Went to the desk to get rung up, and the annoying little shiat behind the register would not shut up about getting my cell number so he could "upgrade" my phone.
After saying "no, thanks" a couple of times, I put a $5 bill on the counter and told him to keep the change before I walked out.

Good riddance.
 
2014-08-01 01:41:16 PM  
Good thing Market Basket hired their former CEO!

/thread bleed
 
2014-08-01 01:42:35 PM  
Radio:

www.702store.com

Shaq:

cdn.cosbysweaters.com
 
2014-08-01 01:44:27 PM  
TFA:
In March the chain announced plans to close over 1,000 stores, about one out of every five. But its lenders refused to give RadioShack the cash it needed to do so on terms the chain could afford, so instead it announced plans to close only 200 stores.

"Look... you guys can either give us the money we need to do it right... or I'll buy a few dozen pads of pink slips out of pocket, and everyone simply walks away from those locations, last one out the door hits the lights, first methhead to pick the lock hits the jackpot."

Doesn't seem like it should be that hard to convince them.

/Not a business major, I'm sure it's harder than that.
 
2014-08-01 01:50:58 PM  

Sin_City_Superhero: Radio:

Shaq:


When did Shaq become a muppet?
 
2014-08-01 01:53:27 PM  

Slackfumasta: Good thing Market Basket hired their former CEO!

/thread bleed


Hey I'm sure MB will be run in the same quality way.......oh NVM
 
2014-08-01 01:55:53 PM  
I stopped going there when they wanted to know everything about me just to buy something for $8 cash.
 
2014-08-01 01:56:48 PM  

Delta1212: Sin_City_Superhero: Radio:

Shaq:

When did Shaq become a muppet?


A muppet puppet of the statists
 
2014-08-01 01:57:51 PM  

the cake is a pie: TFA:
In March the chain announced plans to close over 1,000 stores, about one out of every five. But its lenders refused to give RadioShack the cash it needed to do so on terms the chain could afford, so instead it announced plans to close only 200 stores.

"Look... you guys can either give us the money we need to do it right... or I'll buy a few dozen pads of pink slips out of pocket, and everyone simply walks away from those locations, last one out the door hits the lights, first methhead to pick the lock hits the jackpot."

Doesn't seem like it should be that hard to convince them.

/Not a business major, I'm sure it's harder than that.


Investors would love that scenario, as they'd get to recoup 100% of the capital investments (from insurance claims) AND get to close down all the stores. They'd only get a fraction of that from the liquidation they are gunning for.
 
2014-08-01 02:06:27 PM  
Article is dumb and incorrect.  The announcement was done without reading both shareholder and lender covenants.  Lender covenants stated that the maximum they could close is 200 per year.  Of course the bank will not let fund out of a LOC if the funding would be in breach of covenants.  This is a CEO, CFO clusterfark of the highest order.  Don't make farking announcements about shiat until you know for sure that you can do what you plan to announce.  This has a D&O action written all over it.
 
2014-08-01 02:20:42 PM  
"The chain of 4,000 stores..."
"...close over 1,000 stores, about one out of every five..."
 
2014-08-01 02:22:01 PM  
Guess they should have stuck to selling electronics instead of dish network and smartphone plans.

/one of my favorite stores a long time ago.
//good riddance.
 
2014-08-01 02:28:26 PM  
What I don't understand is they just opened a new store in a new Strip-Mall just north of me.

If you're in so much trouble, why are you opening NEW stores?
 
2014-08-01 02:28:52 PM  
Are they in bankruptcy yet? Some private equity firm might put up some money for the liquidation.
 
2014-08-01 02:31:25 PM  

show me: I used to love RS when I was a kid. You could buy electronic components and build kits, it was so much fun for electronics geeks. Goodbye, old friend. :(


Radio Shack was cool back when it sold that kind of stuff.

But nowadays it seem that all they sell are smartphones, headphones, and batteries.  That's not really a winning niche.
 
2014-08-01 02:40:01 PM  
They're trying to break into the 'maker' market with Arduino and such, but it seems to be too little too late. With the quick shipping and broader selection that online stores provide, RS' position as a convenience store for electronics (with the surcharge one pays) is harder to justify.

/source: i was a former shack manager
 
2014-08-01 02:46:41 PM  

Bruce Campbell: Article is dumb and incorrect.  The announcement was done without reading both shareholder and lender covenants.  Lender covenants stated that the maximum they could close is 200 per year.  Of course the bank will not let fund out of a LOC if the funding would be in breach of covenants.  This is a CEO, CFO clusterfark of the highest order.  Don't make farking announcements about shiat until you know for sure that you can do what you plan to announce.  This has a D&O action written all over it.


Maybe it's just an elaborate scam against their D&O insurance.
 
2014-08-01 02:49:29 PM  

RamboBrite: They're trying to break into the 'maker' market with Arduino and such, but it seems to be too little too late. With the quick shipping and broader selection that online stores provide, RS' position as a convenience store for electronics (with the surcharge one pays) is harder to justify.

/source: i was a former shack manager


Me TOO! Till Jan 06
 
2014-08-01 02:50:31 PM  
churchm.ag
 
2014-08-01 03:06:03 PM  
I bet they wish the had the $4 billion they spent on stock buy backs over the last 10 years.

/had to get senior mgmt those bonuses.
 
2014-08-01 03:06:22 PM  
What amazes me is that they even lasted this long. Their slide downhill really began when PCs took over the market. Their computer offerings from that era always struck me as being highly overpriced.
 
2014-08-01 03:11:42 PM  

under a mountain: [churchm.ag image 620x539]


WOW, TRS-80 Pocket computer. I actually HAD one of those. I was doing a degree in electrical engineering at the time, and one of the courses was numerical analysis of circuits.

For part of the course we had to roll our own programs before using Spice. The only languages available were FORTRAN on punch cards and APL in golf ball selectrics (all on an IBM 360).

I was actually able to do a lot of assignments on BASIC on the pocket computer. I even had the docking station with a cassette interface, and carried a small cassette recorder in my giant nerd briefcase to store the programs on. Very cool at the time.

And yes, RS used to be the only place you could get a resistor, capacitor, switch or voltage regulator late at night or on the weekend for the project you were trying to get going (or the part you had just accidently  let the magic smoke out of -  http://en.wikipedia.org/wiki/Magic_smoke ). An important part of my formative years, and will be missed.

Good idea about trying to cater to the maker angle - but with  http://www.adafruit.com/ and others, will be hard to do.
 
2014-08-01 03:34:48 PM  

Ego edo infantia cattus: Guess they should have stuck to selling electronics instead of dish network and smartphone plans.


You do realize that they stopped selling those things because no one was buying them, right?
 
2014-08-01 03:48:20 PM  

jst3p: Ego edo infantia cattus: Guess they should have stuck to selling electronics instead of dish network and smartphone plans.

You do realize that they stopped selling those things because no one was buying them, right?


Yeah I was working at one till '09. We usually had a couple of people per day buying a few parts, but it was nowhere near enough to be profitable. Though the parts themselves had great markup on them. What was worse was that the people who did come in for parts couldn't get what they wanted half the time, since RS reduced their selection since they weren't selling enough parts. So then they'd just leave frustrated and were less likely to come back since we didn't have what they needed last time and wouldn't want to waste a trip. Can't say I blame them.

So I feel a little bad about them going under but the writing has been on the wall for a long time, they shouldn't have waited so long to make a transition. And focusing so much on cell phones was a bad idea IMO and just a stop gap since you're going to hit saturation sooner or later, despite what one of my idiot managers insisted at the time.
 
2014-08-01 04:21:10 PM  

RamboBrite: They're trying to break into the 'maker' market with Arduino and such, but it seems to be too little too late. With the quick shipping and broader selection that online stores provide, RS' position as a convenience store for electronics (with the surcharge one pays) is harder to justify.

/source: i was a former shack manager


I think Home Depot is getting ready to sell MakerBot 3D printers in their stores. Oops. They are offering them online now

http://www.homedepot.com/b/Tools-Hardware-Power-Tools-3D-Printers-Ac ce ssories/MakerBot/N-5yc1vZc7mrZduc

why i wouldn't buy direct, I don't know.
 
2014-08-01 04:45:23 PM  

pyrotek85: jst3p: Ego edo infantia cattus: Guess they should have stuck to selling electronics instead of dish network and smartphone plans.

You do realize that they stopped selling those things because no one was buying them, right?

Yeah I was working at one till '09. We usually had a couple of people per day buying a few parts, but it was nowhere near enough to be profitable. Though the parts themselves had great markup on them. What was worse was that the people who did come in for parts couldn't get what they wanted half the time, since RS reduced their selection since they weren't selling enough parts. So then they'd just leave frustrated and were less likely to come back since we didn't have what they needed last time and wouldn't want to waste a trip. Can't say I blame them.

So I feel a little bad about them going under but the writing has been on the wall for a long time, they shouldn't have waited so long to make a transition. And focusing so much on cell phones was a bad idea IMO and just a stop gap since you're going to hit saturation sooner or later, despite what one of my idiot managers insisted at the time.


I worked there around 96-2000.

We made a shiat ton of money on spiffs selling cell phones. It was the right move at the time but apparently no one thought about the move after that.
 
2014-08-01 04:46:47 PM  

Jiro Dreams Of McRibs: RamboBrite: They're trying to break into the 'maker' market with Arduino and such, but it seems to be too little too late. With the quick shipping and broader selection that online stores provide, RS' position as a convenience store for electronics (with the surcharge one pays) is harder to justify.

/source: i was a former shack manager

I think Home Depot is getting ready to sell MakerBot 3D printers in their stores. Oops. They are offering them online now

http://www.homedepot.com/b/Tools-Hardware-Power-Tools-3D-Printers-Ac ce ssories/MakerBot/N-5yc1vZc7mrZduc

why i wouldn't buy direct, I don't know.


There's still a HUGE economy of electronics hobbyists, 3D printer types, home machinists, etc, but most of that stuff is better bought online. For something like an Arduino the online purchase is easier because you're better presented with all of the relevant information (model line comparisons, etc) plus recommended accessories. For a 3D printer I have no idea why I would go to Home Depot to buy it. For all of the tiny accessories for both, well, the selection of a retail store is never going to be good enough and their prices will suck because of the low volumes. The communities that support all of these products are online, often centered around the stores and manufacturers themselves. Third-party store distribution just doesn't work here.

Radio Shack was never going to compete with Adafruit, Sparkfun, etc. with a 4000-store retail chain. Just not the right type of folks to market to and virtually zero "walk-in from the mall" sales of that kind of product. They just couldn't find another niche that was actually profitable enough to keep the lights on where they might be able to sell resistors and LEDs on the side.
 
2014-08-01 05:34:27 PM  

Smeggy Smurf: Delta1212: Sin_City_Superhero: Radio:

Shaq:

When did Shaq become a muppet?

A muppet puppet of the statists


Really you can't contain that sort of bowel movement for a Politics thread?
 
2014-08-01 06:08:59 PM  
Go back to selling electronics, and dump all the cell phone crap.
Also, don't charge me $12 for a freaking momentary switch.

That would fix them.
The issue is they turned away from the smart people, and tried to grab a share of the Moron Market.
Turns out, there are a lot of competitors in that market.
 
2014-08-01 06:19:23 PM  
The last time that I went into a Radio Shack it was to buy a battery for a fob for my car.  The person helping me claimed that they did not have that and suggested I look online.  So I did and the first hit on Google was Radio Shack...  It seems that they are not even the battery, cell phone, and, RC toy store anymore.  Now they specialize in selling nothing.

/CSB
 
2014-08-01 06:21:06 PM  
The last time I was in a Radio Shack, I needed a battery for my Heart Rate Monitor. It was an odd size, but they had it. The guy behind the counter couldn't have fit the gamer/geek stereotype more. Easily 6'2", overweight, shirt hanging off his belly, hair in a pony tail, scruffy beard and bottle of Mountain Dew on the back counter next to his bag of Doritos. 

If they ever do close, I hope to snag one of those X in One project kits for my kids. But I don't think they offer them any longer. I learned a lot with the one I had and enjoyed the hell out of it as a kid.
 
2014-08-01 06:24:21 PM  

ds615: Go back to selling electronics, and dump all the cell phone crap.
Also, don't charge me $12 for a freaking momentary switch.

That would fix them.
The issue is they turned away from the smart people, and tried to grab a share of the Moron Market.
Turns out, there are a lot of competitors in that market.


they should take advantage of the new STEM market..

go back to the electronics, science projects and learning kits..

Radio Shack.. your STEM headquarters!
 
2014-08-01 06:57:56 PM  
Wonder how long till the clearance sales still up. Might be something worth snagging for 50% off.
 
2014-08-01 07:04:43 PM  

pyrotek85: So I feel a little bad about them going under but the writing has been on the wall for a long time, they shouldn't have waited so long to make a transition. And focusing so much on cell phones was a bad idea IMO and just a stop gap since you're going to hit saturation sooner or later, despite what one of my idiot managers insisted at the time.


That, and don't most people just wait for their contracts to be up and get a new free phone from their provider?
 
2014-08-01 07:05:51 PM  
I use radio shack for adapters and no frills phones
 
2014-08-01 07:48:56 PM  

Crotchrocket Slim: Smeggy Smurf: Delta1212: Sin_City_Superhero: Radio:

Shaq:

When did Shaq become a muppet?

A muppet puppet of the statists

Really you can't contain that sort of bowel movement for a Politics thread?


I see a pig, I insult it and the people that support them
 
2014-08-01 09:27:19 PM  
Radio Shack has a holy grail out there and they won't simply reach out and take it.

Become a Maker provider and usher in a whole new generation of geeks.
 
2014-08-01 09:54:29 PM  
www.laughsonthenet.com

Dammit, now where will I buy my novelty robot coin banks?!
 
2014-08-01 10:11:44 PM  
Damn, I need a new internal 28.8k baud modem for my Tandy Color Computer.
 
2014-08-01 10:20:37 PM  

Mugato: Damn, I need a new internal 28.8k baud modem for my Tandy Color Computer.


28.8k?  Aren't you aiming pretty high?

/started with a 300
 
2014-08-01 10:23:48 PM  

Nightjars: Mugato: Damn, I need a new internal 28.8k baud modem for my Tandy Color Computer.

28.8k?  Aren't you aiming pretty high?

/started with a 300


I'm from the future.
 
2014-08-01 10:24:29 PM  

Nightjars: Mugato: Damn, I need a new internal 28.8k baud modem for my Tandy Color Computer.

28.8k?  Aren't you aiming pretty high?

/started with a 300


Internal? Getting fancy there..

justbrewit.net
 
2014-08-01 10:27:28 PM  

johnnyrocket: Nightjars: Mugato: Damn, I need a new internal 28.8k baud modem for my Tandy Color Computer.

28.8k?  Aren't you aiming pretty high?

/started with a 300

Internal? Getting fancy there..

[justbrewit.net image 640x480]


I never had one of those... My first modem was one of these.

img.fark.net
 
2014-08-01 11:56:44 PM  
I was in a Radio Shack a few weeks ago to pick up a few things I needed for an electronics project, and the person working there was very knowledgeable. He told me which other stores had all the things I needed.
 
2014-08-02 12:12:00 AM  
Wow their stock went from $4 to 60 cents over the last year.
 
2014-08-02 03:48:04 AM  
I think the "radio" in their name has done them no favors.

It makes some people think they're located next to "8-Track Emporium" or "Velour City" (for clothing).

Shoulda changed name to E-Shack, marketed accordingly.
 
2014-08-02 07:34:38 AM  

Huck And Molly Ziegler: I think the "radio" in their name has done them no favors.

It makes some people think they're located next to "8-Track Emporium" or "Velour City" (for clothing).

Shoulda changed name to E-Shack, marketed accordingly.


I think they tried calling themselves "The Shack" for a while.

Are any stores just franchises/affiliates? I can see them doing sort of okay in smaller towns that don't warrant a full Best Buy or even Wal-Mart, but that's a narrow market indeed.
 
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