RadioShack Eyes Possible Chapter 11 Filing

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.