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Tags: RadioShack | bankruptcy | electronics | retail

RadioShack May File for Bankruptcy, Store Chain Says in Filing

Thursday, 11 September 2014 09:42 AM

Troubled electronics retailer RadioShack Corp. said it may need to file for bankruptcy if its cash situation worsens, after reporting its tenth straight quarterly loss.

The company is also exploring other options, including a sale or an investment, to overhaul its balance sheet, it said in a regulatory filing on Thursday.

RadioShack, whose sales have been in a free-fall since 2010, said it was working with its lenders and landlords to restructure its debt and cut costs. The company raised doubts about its ability to continue as a going concern and said it may have to liquidate as a last resort.

Its stock gained 7.2% at 9:45 a.m. New York time after a news report said Swiss bank UBS AG and hedge fund Standard General are working on a loan deal with the electronics store chain.

RadioShack stores, which have been around for more than 90 years, were once the go-to shops for budding innovators and engineers for products that ranged from vacuum tube speakers to the first mass-produced PC.

The retailer, however, has done little to transform itself into a destination for mobile phone buyers, losing out to rivals such as Best Buy Co Inc, Amazon.com Inc and Wal-Mart Stores Inc.

The company ended the second quarter with total liquidity of $182.5 million. Its total debt was $658.0 million, which matures between 2018 and 2019.

Its net loss widened to $137.4 million, or $1.35 per share, in the second quarter ended Aug. 2 from $52.2 million, or 51 cents per share, a year earlier.

Revenue fell nearly 22 percent to $673.8 million.

Same-store sales declined 20 percent.


© 2021 Thomson/Reuters. All rights reserved.


Finance
Troubled electronics retailer RadioShack Corp said it may need to file for bankruptcy if its cash situation worsens, after reporting its tenth straight quarterly loss.
RadioShack, bankruptcy, electronics, retail
268
2014-42-11
Thursday, 11 September 2014 09:42 AM
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