Fort Worth, Texas – RadioShack Corp. is scaling back its plans to close 1,100 stores. In a regulatory filing with the Securities and Exchange Commission (SEC), the retailer said its lenders are offering unacceptable terms for RadioShack to proceed with that many store closures. However, the company will still shutter a number of locations as part of its turnaround plan.
RadioShack’s existing credit agreement allows it to close only 200 stores per year and up to 600 over the life of the agreement (between now and 2018.). The company had been negotiating to increase that number to nearly double that number.
In a document filed with the SEC, RadioShack said that its lenders were demanding terms that it could not accept, which is why it is scaling back on its closings.
RadioShack made the following statement in its filing:
"RadioShack previously announced that it was seeking consent from its lenders under the 2018 Credit Agreement and 2018 Term Loan to pursue a program to close up to 1,100 stores. The terms on which the lenders are currently willing to provide this consent are not acceptable to the company. While the company may continue to have discussions with its lenders regarding the proposed store closure program, the company is continuing with a plan to close fewer stores and pursuing other cost reduction measures permitted under the existing terms of the 2018 Credit Agreement and 2018 Term Loan."