Tandy will take a $170 million charge against its fourth quarter figures to close or sell 36 of its US stores.
The move follows a decision taken last month to close 53 McDuff Electronics shops at a cost of $20 million.
But this hit, which is equivalent to $2.80 per share, will wipe out the retail giant?s profits for both the quarter and the year. Tandy was expected to earn $2.27 a share for the year and $1.03 for the quarter.
The decision will affect 19 of the company?s 103 Computer City shops and 17 of its Incredible Universe superstores, six of which are to be sold to Palo Alto-based Fry?s Electronics.
Tandy also plans to sell the remaining 11 outlets or find other uses for them over the next six months. The firm?s Radio Shack electronics chain will be unaffected.
Incredible Universe and Computer City have lost Tandy $50 million over the past year, and the latter, the US? second largest computer chain, will now shift its focus to buyers of office equipment for the home.
Computer City was particularly hurt by its larger rival, CompUSA, which focuses on the corporate market, as well as by slowing growth in PC sales and price wars, but the aim is to return to profit this year.
Tandy now plans to improve its service offerings in its Radio Shack stores, investing $15 million to improve services and security. It also plans to open a Radio Shack superstore this year to test the concept.
Nobody was available for comment at Tandy as we closed, and it is unclear if the UK will be affected.
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