RadioShack to End 401(K) Plan Matching to Reduce Costs
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RadioShack Corp., the struggling electronics retailer, will stop matching employees’ retirement-fund contributions and close stores to help cut costs.
RadioShack will discontinue matching for 401(k) and 1165(e) plans on Feb. 1, according to an internal memo from Chief Executive Officer Joe Magnacca that was obtained by Bloomberg. The company plans to close as many as 1,100 stores in its next fiscal year, contingent upon consent from lenders, some of which have blocked attempts to shut them. RadioShack is also reviewing health benefits, according to the memo.