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The end is near

Gizmodo's list of potentially doomed companies of 2011, which is determined by 24/7 Wall St. analysts' figures, has grown a little longer as of late. Three new additions include companies that many people have regularly attended for years: Blockbuster, T-Mobile and RadioShack. 

Movie rental store Blockbuster has been around since October 1985 and had over 9,000 stores in 25 countries worldwide, but that hasn't stopped new entertainment companies like Netflix from moving in and changing the way people watch movies, thus destroying Blockbuster's traditional movie rental model.

Blockbuster's balance sheet hasn't been looking good, either. According to 24/7 Wall St. Analyst Douglas A. McIntyre, Blockbuster lost $65 million last quarter and is now looking to file Chapter 11 in hopes of shedding their debt. Currently, there are 6,000 stores remaining after their financial troubles hit, but the good news, according to Gizmodo, is that a Netflix/Redbox hybrid could exist in the future, keeping some mail service and supermarket kiosks around.

T-Mobile is in a similar situation as Blockbuster when it comes to competition-related problems. T-Mobile's possible demise in 2011 will be due to a lack of 4G offering, which will crush them because many other carriers will have 4G, and the fact that they have a smaller customer base than several other carriers.

At one point, there were rumors of a T-Mobile/Sprint merger, which would save T-Mobile's parent company Deutsche Telekom and make them as competitive as Verizon or AT&T.  

RadioShack is another company aiming toward its potential doomsday in 2011, but their demise is nothing new or surprising. In 2006, RoadioShack closed approximately 500 locations because they made less than $350,000 in revenue annually. That same year, 400-450 corporate layoffs went into effect and the company received widespread public criticism for firing these employees by e-mail. 

More recently, in March of this year to be exact, there were reports of Best Buy looking into merging with RadioShack, but nothing more has come of this since then. According to Anthony Chukumba, analyst for BB&T Capital Markets, investors will likely be interested in

RadioShack because their balance sheet is strong. In March, the company had "$908 million in cash outweighing its $669 million in debt."

The list of familiar companies expected to go out of business due to competition and debt seems to increase more and more, and it makes one wonder if anything is going to look up in 2011. But it looks as if RadioShack, Blockbuster and T-Mobile all have alternative options to seek out before the end. 



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I used to love Radio Shack
By monkeyman1140 on 7/13/2010 3:19:38 PM , Rating: -1
They had all the gizmos and electronic parts you could ever need. They were pricey but there always was a store nearby, otherwise you had to drive to some obscure electronics vendor in an industrial area to get access to the same kinds of electronics tinkerer stuff.

When they decided to abandon us techies, it started a spiral of self-destruction. Nobody really wants Tandy branded consumer electronics when cheaper name brand goods are available. They've outsourced their component manufacture to China and the quality reflects that. Radio Shack parts used to be bulletproof, now they're no better than anything you can buy in Wal-Mart or Home Depot.

Lastly their ship to store options suck. You can't actually buy something with money or a check and have it shipped to you. You need a credit card, or if the manager can finagle it, you buy a gift card from them, then he takes the gift card and purchases the item online for you. Its ridiculous, but unfortunately its quite common now. Why pay Radio Shack's premium prices if you have to jump through hoops to get it? There are plenty of internet vendors out there with alternative payment options.

Its no longer the company it used to be.




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