RadioShack Says It May Need to File for Bankruptcy

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/ Source: Reuters

The retailer whose name was once synonymous with electronics says it may be headed for bankruptcy or even liquidation. RadioShack said Thursday it may need to file for Chapter 11 if its cash situation worsens, after reporting its tenth straight quarterly loss. The company is also exploring other options, including a sale or an investment, to overhaul its balance sheet, it said in a regulatory filing. RadioShack, whose sales have been in a free-fall since 2010, said it was working with its lenders and landlords to restructure its debt and cut costs.

The company raised doubts about its ability to continue as a going concern and said it may have to liquidate as a last resort. RadioShack stores, which have been around for more than 90 years, were once the go-to shops for budding innovators and engineers for products that ranged from vacuum tube speakers to the first mass-produced PC. The retailer, however, has done little to transform itself into a destination for mobile phone buyers, losing out to rivals such as Best Buy Co Inc , Inc and Wal-Mart Stores Inc .


-- Reuters and NBC News staff