FORT WORTH—RadioShack Corp. said in an SEC filing Thursday that a Chapter 11 reorganization or Chapter 7 liquidation were both near-term possibilities as it struggles with mounting quarterly losses. Those losses persisted into the quarter that ended August 2, for which the Fort Worth-based electronics retailer reported double-digit year-over-year declines in total revenues and same-store sales.
“We have experienced losses for the past two years that continued to accelerate into the second quarter of fiscal 2015, primarily attributed to a prolonged downturn in our business,” according to RadioShack's SEC filing, which also reported that its stock price fell below $1 per share during the most recent quarter. In view of negative cash flows from operations and with an eye toward meeting its long-term cash needs, the company is exploring its alternatives, which also include a sale of the company or partnership through a recapitalization or a restructuring in or out of court.
Although a recap appears to be RadioShack's most likely course of action, “we are continuing to evaluate all of our alternatives to restructure existing debt terms and other arrangements to provide additional liquidity,” according to the SEC filing. “There can be no assurance that we will be able to successfully implement a long-term solution.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.