RadioShack’s march toward doom is continuing steadily on, after announcing it would close a bunch of stores, then saying it wouldn’t close as many because even that was too expensive, and telling employees it would no longer match employees’ retirement contributions as of next year, the struggling electronics retailer is reportedly getting ready to file bankruptcy papers.
The filing could come as early as next month, reports the Wall Street Journal, as RadioShack is in talks with lenders who could help provide the cash to cover its operations during the bankruptcy protection proceedings.
The company is also reportedly in talks with a private-equity firm that could be interested in buying its assets out of bankruptcy, but that deal is far from being a sure thing. RadioShack might go the more typical road of reducing its debt and restructuring its operations in bankruptcy court.
Everything could change in the next few weeks, of course, but it seems inevitable that RadioShack has to do something — it’s been bleeding cash and posting losses for 11 straight quarters.
RadioShack Prepares Bankruptcy Filing [Wall Street Journal]
by Mary Beth Quirk via Consumerist