Struggling Electronics Chain, in Talks with Lenders, Could File as Soon as Next Month

RadioShack Corp. is preparing to file for bankruptcy protection as early as next month, people familiar with the matter said, following a sputtering turnaround effort that left the electronics chain short on cash.

A filing could come in the first week of February, one of the people said. The Fort Worth, Texas, company has reached out to potential lenders who could help fund its operations during the process, another person said.

Meanwhile, RadioShack is in talks with a private-equity firm that could buy its assets out of bankruptcy, the people said. They cautioned that the talks with the private-equity firm may not produce a deal and that the company may try instead for a more typical reduction of debt and restructuring of its operations in bankruptcy court.

Situations when companies are close to a bankruptcy filing can be fluid and even contentious, and plans can change at the last minute.

The retailer has made clear it is running dangerously low on cash after posting losses in each of the last 11 quarters, and its stock-market value has shriveled to less than $50 million. In December, it warned in a securities filing that it could be forced into bankruptcy court if it couldn’t raise new funds or get relief from lenders that have blocked its efforts to close hundreds of stores.

http://www.wsj.com/articles/radioshack-p...EWS&autologin=y

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RS is nothing but a cheap cell phone and battery store. They sell nothing of value like they did 15 or 20 years ago. I couldn't even get a simple 3 way toggle switch there a couple years ago. Pointless place.

I have fond memories of young techies that helped me through my many technology meltdowns !!

Sad to see another US Company bite the dust !!

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Quote: ThirstyMan wrote in post #3

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And.... if you buy something there it is sold on commission. That's such an old tactic to generate sales.

Commission sales makes getting a return processed by the clerk a potential nightmare.

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The Chinese have killed them. The RadioShack battery brand made in China couldn't power a firefly's ass to light up.

Quote: PzLdr wrote in post #6

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The RadioShack battery brand made in China couldn't power a firefly's ass to light up.

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It is a real shame, I used to love to go to RS as a kid looking to get parts for various projects....

Another one of those things that just keeps me wondering on a daily basis, "What the heck has happened to this Country??"



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