RadioShack Corp., the struggling electronics retailer, will stop matching employees’ retirement fund contributions.
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.
“As a result of these ongoing cost reductions, we are making several difficult but necessary decisions that will allow us to further contain costs and expenses,” Mr. Magnacca said in the memo.
RadioShack is continuing to look at cost-saving measures, said Merianne Roth, a spokeswoman for the Fort Worth, Texas-based company. She declined to comment on the memos.
The 401(k) and 1165(e) plans had a combined $226 million in assets as of June 30, 2013, according to its most recent Form 5500 filings.