RadioShack Shares Plunge as It Declines Comment on Media Reports It’s Preparing for Bankruptcy
RadioShack wouldn’t comment Thursday on media reports that the chain was preparing to file for bankruptcy as soon as early February. “We decline to comment except to say that RadioShack has not confirmed any of the information that is being…
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reported,” it said in an email statement. The reports said RadioShack is negotiating with a firm to buy its assets out of bankruptcy and also has contacted potential lenders for loan agreements to fund operations during a bankruptcy reorganization. The reports sent RadioShack shares plummeting further toward the zero mark. Shares closed 35.6 percent lower Thursday at 26 cents. "We know that coming to a long-term solution will be difficult and our ability to get there will be significantly affected by our performance during the critical holiday period," RadioShack CEO Joe Magnacca said Dec. 11 on the company's Q3 earnings call of his company's precarious financial predicament "There is no predetermined outcome to our recapitalization work and there can be no assurance that we will be able to successfully implement a long-term solution," Magnacca said then, without taking questions. RadioShack has not commented on its holiday selling season performance, except to say that its U.S. same-store sales were down 1 percent for Black Friday weekend.