Report: Major vendor won’t alter terms for RadioShack

Fort Worth, Texas – RadioShack Corp. has reportedly so far been unsuccessful in its efforts to convince an unidentified ‘major vendor’ to modify a commercial agreement in a way that could benefit a financial restructuring. According to the Wall Street Journal, RadioShack still has not identified the vendor or exactly what terms it wants to restructure, but has been negotiating with wireless carriers including AT&T and Sprint to ease the terms under which the retailer is allowed to resell equipment.



RadioShack said it also pursuing similar restructuring efforts with other lenders, bondholders, shareholders and landlords. 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.