Sentence Correction

Trans World Entertainment Corporation, which owns the Record Town and Saturday Matinee retail chains,
announced that since sales of up to one-fourth of its stores are poor, they will be closed.

They can mean stores or sales... hence A is ambiguous.

the correct construction is
Trans World Entertainment Corporation, which owns the Record Town and Saturday Matinee retail chains,
announced that it was closing up to one fourth of its stores because of poor sales.

Announced that.... is the correct usage..