Thursday, February 5, 2015

We'll just work around that restriction - why a Radio Shack only had a cash register

The slow expiration of Radio Shack is resulting in unusual behavior. For example, take the desire of Radio Shack management to close stores.

It announced plans last year to close 1,100 stores, but lenders blocked the move.

The lenders dictated that Radio Shack could only close 200 stores during last fiscal year, which ended up January 31, 2015. So Radio Shack closed the 200 stores, and no more. Well, sort of.

This past Sunday, RadioShack (RSHC) quietly closed 200 more stores, according to multiple employees. Staff at several of those stores say they were given only hours notice last week before rental trucks arrived to haul away remaining inventory.

At one of those stores in Pennsylvania, the last item left was the cash register. That remained so that the store could perform a single transaction on Sunday morning, allowing the store to technically make it into the new fiscal year that started February 1.

So now Radio Shack has closed all of the stores that it can close for the NEW fiscal year. Will the remaining Radio Shacks sit with cash registers only until February 1, 2016?

Many people are saying that Radio Shack won't survive into 2016. But I wonder if THE SHACK, zombie-like, will continue to exist forever and ever.

Heck, this reminds me of a business version of my short story "Nine." A hundred years from now, these stores with the name "Radio Shack" will be sitting around, and some business executive will be shocked to discover that they've existed since the 20th century.
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