RadioShack closes near all-time low, analyst says "the ship is sinking"

|About: RadioShack Corporation (RSH)|By:, SA News Editor

RadioShack (RSH) has lost almost half its market cap since the beginning of the year, plunging 9.5% today and coming within pennies of its all-time closing low after reneging on its plan to close up to 1,100 stores.

RSH said its credit agreement only allows it to close up to 200 stores per year and up to 600 over the life of its credit agreement, prompting Wedbush analyst Michael Pachter to respond that "the creditors clearly are in control of the ship, and in our view, the ship is sinking."

Pachter sees management and creditors trying to compromise on a smaller number of store closings; otherwise, RSH could declare bankruptcy, holding off the creditors and allowing it to close as many stores as it wants.