RadioShack climbed nearly 8 percent in premarket trading Tuesday after the electronics retailer said it would close down its mobile phone centers in Target stores, an operation that analysts see as a money loser.
Late Monday, the company said that it had been renegotiating the terms of its relationship since October, but that an agreement was out of reach. The contract will expire in April.
RadioShack Corp. struck a deal to operate Target Mobile in 2010, allowing people to buy mobile phones, activate contracts and buy accessories in Target stores.
Stifel Nicolaus analyst David Schick called the venture a money loser and he believes RadioShack will be able to illustrate the benefits of ending the agreement as early as the second quarter of this year.
A representative for Target Corp. could not be reached immediately for comment.
Shares of RadioShack Corp. gained 18 cents to $2.49 before the market open.