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RadioShack Considering Hiring Investment Bank to Improve its Balance Sheet (RSH)

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Electronic goods retailer, RadioShack Corporation (NYSE: RSH) said on Thursday that it was considering consulting investment bank to improve its balance sheet.

As debt matures and sales tumble, Radio Shack is now hard-pressed to find ways to get rid of bloated inventories and use cash more effectively, said a trade publication Debtwire, according to Reuters.

Commenting over Company’s decision to hire a financial adviser, RadioShack Corp’s spokesman Kirk Brewer said, “Like many companies, we have discussions with investment banks to help us evaluate ways to further strengthen our balance sheet and manage it efficiently.”

“That has been the sole focus of these discussions,” added Brewer.

The Company hasn’t reported a quarterly profit since 2012 as both sales and margins have declined sharply. Although RadioShack appointed a new CEO, Joseph Magnacca in Feb. 2013 and put in place some new experimental concepts for its stores, the company has failed to turnaround.

RadioShack Corp’s sagging business was reflected by its recent quarterly results. On April 23, the Company reported that comparable-store-sales in the fiscal first quarter fell 5.7% while inventories soared 27%.

At that moment, RadioShack said that it feared things will not improve by the first half of 2013. The Company is slated to report fiscal second quarter results on July 24.

According to analysts’ consensus forecast, RadioShack is expected to post a loss of 76 cents a share in 2013 and another 51 cents a share, in the next year.

Shares of RadioShack Corporation tumbled 7.07% in regular trading hours on Thursday to $2.63; however it gained about 1.50% in afterhours trading.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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