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RadioShack May be Sailing Into the Sunset, Moody's Says

Credit ratings agency has dire warning about the long-struggling electronics chain.
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RadioShack to hit $0?

June 11, 201401:12
/ Source: CNBC.com

Better stock up on those coaxial cables and batteries. Electronics chain RadioShack could run out of cash sometime next year, Moody's credit ratings agency said Tuesday. "Barring a cash infusion, RadioShack will not have much of a cash cushion to draw upon as it scrambles to remain relevant in the increasingly competitive mobile phone and consumer electronics business," Moody's said in a note. RadioShack did not immediately respond to request for comment. In the most recent quarter ended May 3, the company posted an operating loss of $81 million. Over the same period, its cash balance shrank to $62 million, Moody's said. Earlier this year, RadioShack had announced plans to close about 1,100 U.S. stores. But a disagreement with lenders caused the chain to dial back this plan to close up to 200 stores a year over the next three years.

We apologize, this video has expired.

RadioShack to hit $0?

June 11, 201401:12

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-- CNBC's Krystina Gustafson and NBC News staff