Report: Standard General to act as lead bidder for RadioShack

Fort Worth, Texas – Hedge fund Standard General LP is reportedly arranging to act as the lead “stalking horse” bidder for troubled electronics retailer RadioShack Corp. According to the Wall Street Journal, Standard General, which is RadioShack’s largest shareholder and has already provided financing that allowed RadioShack to operate through 2014, is currently negotiating a stalking horse deal with the company.



Standard General would serve as lead bidder in a court-supervised bankruptcy auction. The hedge fund may place a bid to but RadioShack with fewer than its current roster of 4,300 stores. RadioShack is also currently negotiating the terms of a $500 million “debtor-in-possession” loan from shareholder Salus Capital Partners that would let the company operate during Chapter 11 restructuring. That loan may include or have included provisions for RadioShack to sell up to 1,000 of its U.S. stores.



In a December 2014 SEC filing, RadioShack warned it may be forced into bankruptcy and said it only had $62.6 million on hand as of Nov. 1, 2014. The company has posted losses in 11 straight quarters.