Dec. 26, 2014, 4:15 AM
- As it looks to the holiday season for its survival, RadioShack (NYSE:RSH) has just under a month to generate enough cash to survive.
- The company must have $100M of cash and borrowing capacity by the middle of January to trigger the next stage of a rescue plan that will buy it more time to turn itself around.
- As of the beginning of November, RadioShack had only about $63M.
Dec. 19, 2014, 2:26 PM
Dec. 16, 2014, 8:38 AM
Dec. 11, 2014, 3:22 PM| Dec. 11, 2014, 3:22 PM | 5 Comments
Dec. 11, 2014, 7:13 AM
- RadioShack (NYSE:RSH) reports comparable-store sales fell 13.4% in FQ3.
- The comp in the U.S. was -2.0% as the company focused on higher-margin products.
- RadioShack's operating loss of $114.1M was narrower than the $128.6M from last year.
- Gross profit rate +180 bps to 32.9%, due largely to a shift in mix.
- SG&A expense rate +280 bps to 48.3%.
Dec. 11, 2014, 7:04 AM
- RadioShack (NYSE:RSH): Q3 EPS of -$1.23 misses by $0.19.
- Revenue of $650.2M (-16.1% Y/Y) misses by $66.83M.
Dec. 10, 2014, 5:30 PM
Dec. 5, 2014, 2:01 AM
- RadioShack (NYSE:RSH) will stop matching employees’ retirement-fund contributions as it continues to look at cost-saving measures, Bloomberg reports.
- According to an internal memo from Chief Executive Officer Joe Magnacca, RadioShack will discontinue matching for 401(k) and 1165(e) plans on Feb. 1.
- The company has also been trying to shutter 1,100 of its unprofitable stores, but has still not been able to obtain the necessary creditor approval for the closures.
Dec. 2, 2014, 3:46 PM
- Shares of RadioShack (NYSE:RSH) come off their trading halt to peel off 10.6%.
- The company is laying blame at the feet of Salus Capital for "manufacturing" a problem with a breach of a refinancing covenant.
- Previously: RadioShack halted amid controversy over covenant breach
Dec. 2, 2014, 10:13 AM
- Trading in shares of RadioShack (NYSE:RSH) has been halted after Salus Capital issues the company a notice of a covenant breach under the terms of a $250M term loan facility.
- A statement from Radio Shack says the claims by Salus are incorrect.
- Shares of RSH were down 1.3% before the NYSE pulled the plug on trading.
Nov. 27, 2014, 2:14 AM
- Hedge fund Standard General, RadioShack’s (NYSE:RSH) largest shareholder, has agreed to trade some of its potential stake in the struggling electronics retailer in return for four board seats.
- Under the terms of the amended refinancing agreement, Standard General would give as much as 10% of its preferred stockholdings in exchange for the seats and at least two of the designees would be independent directors.
- Following the new changes, RadioShack’s board would include CEO Joe Magnacca, the four designees, and two independent directors.
Oct. 31, 2014, 3:29 AM
- Salus Capital Partners, a major RadioShack (NYSE:RSH) lender, is attempting to buy a bigger piece of the electronic retailer’s debt in exchange for agreeing to back the company’s store-closing plan.
- RadioShack was forced to scale back its plans to close 1,100 underperforming stores this year to just 200, as creditors and vendors disagreed over its restructuring plans.
- Salus is looking to buy as much as $465M of the $585M of loans arranged for affiliates of Standard General, RadioShack's largest shareholder.
Oct. 30, 2014, 1:58 AM
- RadioShack (NYSE:RSH) is bringing Harry Wilson on board as "chief revitalization officer" to advise the the company on how to bring shoppers back into its stores and repair its balance sheet.
- Wilson stepped into public view during the financial crisis, when he emerged from retirement to join the Treasury Department’s team overseeing the restructuring of GM and Chrysler.
- Earlier this month, RadioShack cut a financing deal with several hedge funds that staved off a bankruptcy filing by offering future control of the company to its rescuers.
- RSH +4% AH
Oct. 6, 2014, 12:46 PM
Oct. 6, 2014, 9:16 AM| Oct. 6, 2014, 9:16 AM
Oct. 3, 2014, 5:45 PM
- RadioShack (NYSE:RSH) has "entered into definitive agreements to restructure a portion of its existing debt," and struck a deal for a $120M investment expected to converted into a 50%+ equity stake.
- Shareholder Standard General and other investors have "replaced GE Capital as lead lender under RadioShack's senior secured asset based credit facility," a move that will allow "immediate access to additional liquidity," thereby allowing RadioShack to fund its holiday season inventory build.
- However, borrowing availability under the facility changes in March 2015. RadioShack expects to refinance at that time.
- Standard General, Litespeed Management, and other investors are "providing $120 million to be used to cash collateralize letters of credit for the Company." The investment is expected to be converted into equity provided certian conditions are met. Among them: A rights offering to RadioShack shareholders to buy shares at $0.40 apiece.
- If no shares were purchased through the rights offering, existing shareholders would be left with only a 20% stake. The offering is set to launch late this year or early next.
- If the $120M investment converts into equity, RadioShack's board "will be reconstituted to consist of the Company's CEO, two independent directors selected by RadioShack and four individuals nominated by Standard General."
- RSH is still halted. Shares soared in premarket trading after Bloomberg reported of a $590M refinancing deal.
RadioShack Corp, together with its subsidiaries, is engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain. Its product lines are categorized into two platforms: mobility and retail.
Industry: Electronics Stores
Country: United States