Tags: financing | liquidity | RadioShack | suppliers

RadioShack Said to Get $835 Million Financing to Boost Liquidity

Monday, 21 Oct 2013 07:22 PM

RadioShack Corp., the unprofitable consumer-electronics seller, received commitments for $835 million in new financing, said a person with knowledge of the matter, replacing its existing $625 million credit facilities.

The lenders include GE Capital, Salus Capital Partners LLC, CIT Group Inc. and Royal Bank of Scotland Group Plc, said the person, who asked not to be named because the process is private. The new credit line boosts RadioShack’s liquidity as it tries to persuade suppliers to support its turnaround efforts after it lost $139.4 million last year.

Chief Executive Officer Joe Magnacca is counting on vendors to supply exclusive products to help the Fort Worth, Texas-based company distinguish its offerings from rivals’ merchandise. RadioShack has posted six straight quarters of net losses and declining sales as its customers defect to big box retailers such as Best Buy Co. and online competitors including Amazon.com Inc.

Merianne Roth, a spokeswoman for RadioShack, didn’t immediately reply to a telephone call and e-mail seeking comment. Parts of the new financing package were reported earlier by the Wall Street Journal.

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RadioShack Corp., the unprofitable consumer-electronics seller, received commitments for $835 million in new financing, said a person with knowledge of the matter, replacing its existing $625 million credit facilities.
financing,liquidity,RadioShack,suppliers
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2013-22-21
Monday, 21 Oct 2013 07:22 PM
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