RadioShack, ‘major vendor’ in finance talks

Fort Worth, Texas – Beleaguered consumer electronics chain RadioShack Corp. said is in talks with an unidentified “major vendor” about modifying a commercial agreement in a way that could benefit a financial restructuring. But the retailer said there can be no assurances" that talks will prove fruitful.



RadioShack announced the ongoing discussions in a Sept. 22 regulatory filing.



“The company continues to explore how to optimize its various commercial relationships in light of alternative restructuring scenarios, and may involve lenders, bondholders, shareholders, lease counterparties and other stakeholders in these discussions at any time,” RadioShack said in the filing.



On Sept. 11, RadioShack reported its 10th straight quarterly net loss and warned it may have to file for Chapter 11 bankruptcy, with a possible sale or third-party investment as other potential avenues to remedy its ongoing financial woes.



Analyst firms including Moody’s and Wedbush have recently warned that RadioShack is in danger of running out of operating capital. According to the Wall Street Journal, RadioShack is considering a $585 million financing package led by hedge fund Standard General LP and investment bank UBS AG.



RadioShack's CFO, John Feray, abruptly resigned last week after just seven months on the job.