Moody's issues RadioShack warning

A fresh warning regarding RadioShack's (NYSE:RSH) turnaround plan has been issued by Moody's, stating that the electronics chain is likely to run out of cash by the fiscal third quarter of 2015.

"Barring a cash infusion, RadioShack will not have much of a cash cushion to draw upon as it scrambles to remain relevant in the increasingly competitive mobile phone and consumer electronics business," says Moody's.

In the most recent quarter ending May 3, the company posted an operating loss of $81M.

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Comments (7)
  • DeepValueLover
    , contributor
    Comments (11169) | Send Message
    "the electronics chain is likely to run out of cash"
    30 Jul 2014, 05:12 AM Reply Like
  • DanielJRoche
    , contributor
    Comments (451) | Send Message
    Went into one of their stores for the first time in forever the other day, and it: smelled like a pet store with no air conditioning in the dead of summer; had a floor that was peeling; was staffed with sullen youths, probably earning minimum wage or thereabouts. The merchandise was outdated where it wasn't overpriced, and the advertised "bargains" weren't bargains. This business is truly in a death spiral.
    30 Jul 2014, 07:04 AM Reply Like
  • user 3568911
    , contributor
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    That's weird... I went into a store down the road and thought the complete opposite. All new displays including a Beats/Skull Candy, etc headphone demo display; tons of bluetooth speakers jamming tunes. All new white walls, fixtures, etc.... store looked and felt very sharp. They were even offering cell phone repair services, and there were tablets everywhere for buyers at every price point. Didn't feel like a typical RadioShack at all.
    30 Jul 2014, 11:02 AM Reply Like
  • User 26494003
    , contributor
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    It looks like some stores have been updated...
    I know in NYC, both types of stores (remodeled and dingy) exist.


    Remodeling seems like a step in the right direction, but it's hard to know if it's too little too late. Are there any activist investors/hedge funds involved in trying to save RSH?
    30 Jul 2014, 11:48 AM Reply Like
  • Land of Milk and Honey
    , contributor
    Comments (8731) | Send Message
    I still find things there, that I can't elsewhere very easily. Like surveillance equip for home security, repair parts. Wish they were better run (website is harder to use than need be for searches), and would switch product lines away from the stuff you can buy anywhere else like cellphones.


    I've never been in a store that was fishy or floor peeling - in two cities I'm in frequently. So different experience that way.
    30 Jul 2014, 10:44 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11169) | Send Message
    RadioShack should go back to its roots...a one-stop-shop for the electronics/ communications hobbyist.


    Go completely online and build out their eBay store and even an Amazon store.


    Its a fool's errand to try to compete with Best Buy and hhgregg.
    30 Jul 2014, 08:45 PM Reply Like
  • Land of Milk and Honey
    , contributor
    Comments (8731) | Send Message


    And there is a niche there that no one is filling and they used to fill. A home for the geek, and do-it-yourself fixer of everything. Though Microcenter (only a few stores) does fill it reasonably well for electronics.
    31 Jul 2014, 01:22 PM Reply Like
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