RadioShack Talks With Banks About Finances

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Published July 12, 2013

| FOXBusiness

RadioShack (RSH) said it has held discussions with investment banks, as the struggling retailer looks into ways it can improve its financial position.

Shares rebounded Friday after taking a dive during the previous session on speculation that Texas-based RadioShack was seeking an advisor for a possible bankruptcy. The stock was up 3.4% at $2.72 late Friday morning.

The electronics retailer said it has only sought possible ways to strengthen the company’s balance sheet.

“We continue to have a strong balance sheet with total liquidity of $820 million at the end of the first quarter,” RadioShack said in a statement. “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.”

RadioShack added that it’s focused on “executing our turnaround and serving our customers.”

In April, the retailer reported a wider first-quarter loss, its fifth consecutive quarterly loss, on weaker sales. Chief Executive Joseph Magnacca subsequently outlined a plan to revamp RadioShack’s image.

As of Wednesday’s close, RadioShack shares were down 25% over the last 12 months.

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