Report: Standard General attempting RadioShack ‘rescue package’

Fort Worth Texas – Hedge fund Standard General LP, RadioShack’s second-largest shareholder, is reportedly trying to negotiate a “rescue package” by obtaining debt and equity financing from outside investors. According Bloomberg, Standard General is also meeting with RadioShack management to create a plan that will let the retailer avoid filing for Chapter 11 bankruptcy.



In July, Moody’s Investor Service predicted that RadioShack will run out cash around November 2015 unless it receives a cash infusion. Standard General is currently working with American Apparel to enable the retailer to pay off a $10 million loan and also move forward with its business regardless of whether founder Dov Charney, who has been accused of harassment, remains with the company.



RadioShack posted its ninth straight quarterly loss in June. The company has been revamping and updating its stores, from both design and product standpoints, and is burning through cash in its efforts to transform itself.