The over 90 year old electronics chain continues its backward movement. After a resounding loss for the latest quarter is now warning the company in order that they may be forced to file for bankruptcy.
The troubled electronics chain RadioShack says in connection with his report that the company may be forced to file for bankruptcy if liquidity situation gets worse. It reports FinWire.
RadioShack also announced that they are looking at other options, such as a sale.
The report showed that bleeding the company at a loss for the tenth consecutive quarter.
After a weak Christmas sales and a resounding loss in the fourth quarter of last year was forced to Radio Shack in the beginning of the year to close to close to 1 100 stores, or just under a fifth of the chain’s stores. 2012 was downgraded RadioShack to “junk status” of a credit institution.
RadioShack was founded in 1921 by two brothers and, as the name suggests, was involved initially with the sale of radios. Later the company went on to sell all kinds of electronics gadgets but in recent years it has faced stiff competition from e-commerce and changing customer behaviors.
The sales of the company have fallen sharply since 2010 and they are now working to restructure their debts.
At the end of the second quarter, the chain had a liquidity of $ 182.5 million. Liabilities were $ 658 million.
The quarter net loss amounted to 137.4 million and sales fell 22 percent to $ 673.8 million, writes FinWire.
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