December 5, 2014 / 1:23 AM / 3 years ago

RadioShack to stop matching for 401(k) retirement plans: Bloomberg

(Reuters) - Electronics retailer RadioShack Corp RSH.N will stop matching employees’ retirement-fund contributions and review health benefits to help cut costs, Bloomberg reported on Thursday, citing an internal memo.

The ticker for RadioShack Corp. is seen at the post where it's traded just after the opening bell on the floor of the New York Stock Exchange March 4, 2014. REUTERS/Brendan McDermid

RadioShack will discontinue matching for 401(k) and 1165(e) plans on Feb. 1, the memo from Chief Executive Officer Joe Magnacca said, according to Bloomberg. (bloom.bg/1yjFWXo)

The company has been trying to turn around its business by closing unprofitable stores to cut costs. However, it has been unable to get approval from lenders and creditors to close 1,100 stores.

RadioShack said earlier this week lenders refused to approve the store closures unless it paid significant fees, prepaid a substantial portion of its debt and agreed to other covenants and concessions it considered “unreasonable.”

RadioShack was not immediately available for comment.

Reporting by Amrutha Gayathri in Bengaluru; Editing by Lisa Shumaker

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