RadioShack Reportedly Running Out of Money
RadioShack is in danger of running out of money by next year, Bloomberg News reported, citing a Moody’s note.
Without a capital infusion, RadioShack will probably face a cash crunch by the quarter ending Nov. 1, 2015, Moody’s said today in a report. While the company has no debt coming due until 2018, operating losses will hurt liquidity and hobble its comeback, the credit-rating firm said. The continued cash burn could also force suppliers to pull support, it said. “Barring an improvement in the top line and margins, we think they will continue to burn cash and their liquidity position will continue to deteriorate,” Mickey Chadha, a Moody’s analyst in New York, said in an interview.
RadioShack is currently in the midst of its latest turnaround plan.