Here’s Why RadioShack Needs a Financial Adviser
A report released by Debtwire revealed that RadioShack Corp. (NYSE:RSH) is considering hiring a financial adviser to explore correcting its balance sheet.
The leading national retailer of mobile products and services has had five straight quarters of negative net income, and its shares fell 18 percent on Thursday after the Debtwire report was released.
The electronics chain is on the verge of a liquidity crisis facing a string of debt maturities, the report says, escalating cash burn and bloated inventory levels. RadioShack was not immediately available to comment but issued a statement Friday in response to recent media reports involving the company.
“We continue to have a strong balance sheet with total liquidity of $820 million at the end of the first quarter,” RadioShack’s statement said. ”Like many companies, we have discussions with investment banks from time to time to help us evaluate ways to further strengthen our balance sheet and manage it efficiently. That has been the sole focus of these discussions. As we noted on our last earnings call, we are focused on executing our turnaround and serving our customers.”