RadioShack Needs More Money For Turnaround Effort, Hopes To Avoid Bankruptcy
RadioShack is fast approaching a major hurdle in its long-running turnaround effort: it’s woefully short on cash. The company has been fighting declining sales with strategies that have left critics scratching their heads and was warned by the Securities and Exchange Commission (SEC) in July that its stock price was putting the company in danger of being delisted. In a public release today, RadioShack sounded the alarm: while it believes sales are trending up, it needs more cash for its long-term plans.
RadioShack is working to turn itself around but needs cash.
At least one analyst has predicted that bankruptcy is possibly in RadioShack’s near future. Pressured by the same low margins, declining sales, and online competition that killed off Circuit City and tripped up Best Buy, RadioShack has been searching for a way to connect its former customers. It still offers plenty of gadgets and batteries that you won’t find at typical retail stores, but with websites like Amazon selling many of the higher-margin items for less, customers are turning increasingly to buying those parts online.
RadioShack is working to turn itself around but needs cash.
At least one analyst has predicted that bankruptcy is possibly in RadioShack’s near future. Pressured by the same low margins, declining sales, and online competition that killed off Circuit City and tripped up Best Buy, RadioShack has been searching for a way to connect its former customers. It still offers plenty of gadgets and batteries that you won’t find at typical retail stores, but with websites like Amazon selling many of the higher-margin items for less, customers are turning increasingly to buying those parts online.
