RadioShack Prepares to File for Bankruptcy

Content Manager

RadioShack is reportedly preparing to file for bankruptcy as early as next month, according to CNN Money.

The company had a deadline of Jan. 15 to come up with $100 million in combined cash and available credit or major creditors could stop the long-term financing it needs to survive.

CNN Money reported that Radio Shack only has $63 million available as it went into the holiday season of 2014.

It has been trying to close 1,100 of its 5,000 since March of last year, but that too has been expensive for the electronics company.  It has only come with enough cash to close 175 stores through the end of October.

Today, with so many people ordering items online, the brick-and-mortar locations have become deadweight.

In September, RadioShack’s shares lost nearly a third of its value, the stock fell as much as 20% to 76 cents per share, adding to a 23% plunge.

“Our price target reflects our expectation that creditors will force reorganization and wipe out RadioShack’s equity,” Wedbush analyst Michael Pachter told Reuters in September.

Last June, RadioShack reported its ninth straight quarterly loss and has struggled to sustain its turnaround efforts.

While RadioShack declined to comment, they have not confirmed any of the information that is currently being reported.