Report: Standard General in talks with RadioShack to improve retailer’s liquidity

New York -- Standard General LP is in talks to improve RadioShack’s cash position in advance of the holiday season, Reuters reported. The hedge fund said it was in talks with the struggling retailer to buy the company's loans and other commitments under its asset-backed credit facility.



Standard General has also raised its stake in RadioShack to 9.8% from 7.08%. It is now the retailer’s largest shareholder.



Standard General and certain unnamed investors would invest in the credit facility, and the investors have committed to provide draft financing to fund the transaction, the hedge fund said in a regulatory filing.



The investment could also be the first step of a broader recapitalization that may include Standard General and the investors acquiring a stake in RadioShack, according to the report.



RadioShack had $30.5 million in cash and $658.0 million in debt as of Aug. 2.