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The New York Times reports that RadioShack said yesterday that it has been unable to come to an agreement with its lenders that would have allowed it to close 1,100 stores, which it had said it needed to do in order to turn the company around.

According to the story, "The company’s credit agreement allowed it to close only 200 stores a year and up to 600 over the life of the agreement … In a document filed with the Securities and Exchange Commission on Thursday, the company said that its lenders were demanding terms that it could not accept, and that was why it would scale back the reorganization."

RadioShack currently operates 4,300 stores. The Times notes that "in its last fiscal year, RadioShack reported a loss of $400 million, a substantial slide from its loss of $139 million the year before."
KC's View:
This is going to make it a lot harder for RadioShack to live up to its recent promise to make its stores relevant to 21st century needs and shoppers. Look for the company to go into bankruptcy at some point as the numbers making continuing the way it is almost untenable.