NEW YORK – RadioShack’s stock closed below $1 per share Friday for the first time in its history, reflecting investors’ concern over what lies in store for the long-struggling consumer electronics chain.
Shares of RadioShack Corp. fell 11 cents, or 10 percent, to close at 92 cents. The New York Stock Exchange could delist the stock if it closes below $1 per share for 30 consecutive trading days.
The stock is well below its all-time high of $79.50 set in December 1999. Since then, RadioShack has had trouble finding its place in the evolving retail and technology landscape.
Long known as a destination for batteries and obscure electronic parts, RadioShack has sought to remake itself as a specialist in wireless devices and accessories. But growth in the wireless business is slowing, as more people have smartphones and see fewer reasons to upgrade.
RadioShack’s turnaround efforts have included cutting costs, renovating stores and shuffling management. It announced in March that it planned to close up to 1,100 of its stores in the U.S., leaving it with more than 4,000 U.S. locations.
But in May, the company scaled back those plans after it failed to come to an agreement with lenders. The retailer said that it would close fewer stores and find other ways to cut costs.
Earlier this month the chain reported that its first-quarter loss widened and revenue declined in part due to softness in its mobile business and consumer electronics. The results missed Wall Street’s expectations.
RadioShack is attempting to update its image and remain competitive against online and discount retailers. The Fort Worth, Texas-based company is working on building its pipeline of new products, including private brand and exclusive items such as those from new partnerships with Quirky and PCH.