RadioShack Considering Bankruptcy

Posted by at 11:14 am on September 11, 2014

Radioshack LogoRadioShack is considering whether or not to file for Chapter 11 bankruptcy protection as its cash reserves dwindle.

The company ended its most recent quarter with just $30.5 million in cash on hand, with debts totaling $658 million. It has lost money 10 quarters in a row as electronics buyers shun the chain for larger retailers or the web. Filing for bankruptcy would help protect RadioShack’s remaining cash reserves, and could set the stage for a reorganization of the firm. The company is also weighing taking on investments and cited liquidation as a last resort.

Earlier this year RadioShack announced plans to close 1,100 stores, but later reduced that number to 200 after investors balked. RadioShack sells wireless service from AT&T, Sprint, and Verizon Wireless, as well as several prepaid brands.

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