RadioShack seeks cash for financial turnaround
NEW YORK — RadioShack is looking for a new financial lifeline.
The troubled electronics retailer says it is “actively exploring” ways to get additional cash from a number of parties. It’s also negotiating with existing lenders, bondholders, shareholders and landlords about a financial turnaround plan.
The announcement helped to lift shares of RadioShack in premarket trading.
But the financial results it reported in the same report were anything but encouraging.
Sales at stores open at least a year plunged 20% due to lack of customer traffic and weak demand for mobile devices. Losses more than doubled to $137.4 million.
The company continued to burn through its cash. It ended the quarter with only $30.5 million on its balance sheet. That’s down from $179.8 million at the start of the year.