RadioShack to exit security business, outsource work

October 7, 2004 FORT WORTH, Texas - RadioShack is currently in negotiations to outsource security for its 5,100 company-owned stores, a decision that will result in the closing of its Tandy Security Systems and TanSeco Systems installation subsidiaries. RadioShack has operated an in-house security division for more than 25 years, according to Charles Hodges, spokesperson for RadioShack. But in recent years, the company has exited certain markets, such as selling Pier One, a home store, and dropping its wire and cable manufacturing business. “We’re experts in retailing,” said Hodges. “We’re going to let other people provide the security for our stores. It’s an important function, but it’s not one that we feel we need to be doing ourselves.” As of press time, RadioShack was negotiating with several systems integrators and monitoring firms to take over certain security functions, such as the installation work and project management done by 67 employees. Hodges was unable to release details of the negotiations, such as which companies are being considered or how many, but said the installation and monitoring functions will be handled by separate businesses. RadioShack is also hoping that the new security provider will consider hiring some of its employees, limiting layoffs. Hodges said less than 10 employees from Tandy Security and TanSeco Systems will remain onboard. These employees will manage contracts with the external security company that will be hired to perform future security work. “We’ll have people who will manage the process,” he said. “We just won’t be executing it internally.”