RadioShack Posts $137.4 Million Loss; Bankruptcy Possible
RadioShack this week posted a second-quarter loss of $137.4 million, compared with $51.4 million the same quarter last year. The company is seeking new financing, and also said it may declare bankruptcy.
"For the past 18 months we have been working hard on our turnaround plan. While we are advancing on many fronts, we may need additional capital in order to complete our work. As a result, we are actively exploring options for overhauling our balance sheet and are in advanced discussions with a number of parties," CEO Joseph C. Magnacca said in a statement.
"We are also working with our key financial stakeholders, including our existing lenders, bondholders, shareholders and landlords seeking to create a long-term solution. This may include a debt restructuring, a store base consolidation program, and other measures to make significant reductions in our cost structure.