RadioShack says may file for bankruptcy

Reuters News
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Posted: Sep 11, 2014 7:57 AM

(Reuters) - Troubled electronics retailer RadioShack Corp <RSH.N> 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. [ID:nPn4jY6QZ]

RadioShack shares were down 3.2 percent at 90 cents in volatile premarket trading.

The company raised doubts about its ability to continue as a going concern and said it may have to liquidate as a last resort.

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 <BBY.N>, Amazon.com Inc <AMZN.O> and Wal-Mart Stores Inc <WMT.N>.

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.

(Reporting by Ramkumar Iyer and Tanya Agrawal in Bangalore; Editing by Kirti Pandey and Saumyadeb Chakrabarty)