RadioShack may be preparing for bankruptcy protection starting from as early as February 2015, the Wall Street Journal reports, and is already in talks with a private-equity firm in order to sell its assets.
However the WSJ adds the talks are not final, and as such RadioShack might go for other debt-restructuring options, including reaching out to other potential lenders. An earlier WSJ report says Salus Capital Partners, the retailer's asset-based lender, offered a $500 million debtor-in-possession (DIP) loan replacing its current $585m financing package.
The anachronistically-named retailer suggested it is on the verge of bankruptcy last month, following bigger-than-expected fiscal Q3 losses.
Bloomberg confirms the WSJ report, and adds RadioShack plans to sell some stores to US wireless carrier Sprint, part of a restructuring plan to reduce outlet numbers from over 4000 to 2000-3000.
RadioShack is still to comment on the news stories.
Go RadioShack Prepares Bankruptcy Filing (WSJ)
Go RadioShack Said to be in Talks to Sell Stores to Sprint (Bloomberg)
