Why Can't RadioShack Catch a Break?

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March 6 (Bloomberg) -- Bloomberg's Mary Childs reports on how retailers fared during the winter season and explains why RadioShack can't seem to catch a break. She speaks with Alix Steel and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

The weather of that retailers and margins were bad -- what is going on?

That was definitely the vibe on wall street.

The data was not looking great and everyone was ready for a catalyst for these retailers.

It was like you had a pot of water coming to a boil.

So -- what happened in the water question were everyone else got taken off the burner and radioshack is still on.

Everyone else had liquidity and said we are going to make it at least through this year.

With radioshack, they just could not make it.

The revenues are down, their margins are thin, they are just not scraping by.

Have you guys ever walked into a radioshack store?


I went into a radioshack and is not a welcoming, clean lace.

That's part of the problem.

People don't go to the stores anymore.

It's not a fix it culture anymore.

Does that mean the liquid the concerns of sears or jcpenney are totally off the burner altogether or are they still going to come under scrutiny?

It will definitely come back.

You have people ordering things online and the margins are so much that her.

They have a ton of real estate and they really do have to address that, but today is not that day.

What lows of my mind, crunching some numbers, i looked at the past eight quarters for sears and jcpenney.

At sears, loss less than expected, but the seventh loss out of eight quarters and jcpenney, lost four eight quarters straight.

Why would on the rally in and i are meant -- in an environment where these companies continue to lose money?

Bond investors are pessimistic as it stands, so when they see something that's a little better than they thought, especially with companies like this, they will take it.

They are going to make their coupon payments, the risk is not right now.

And it's not like macy's bonds are rallying.

It's the worst of the worst doing better.

It doesn't care about profits, margins, or unit sales.

When you say i can make my payments, that's a big difference.

In terms of jcpenney and sears, real estate was a big part of their liquidity.

Is that something corporate bond investors are looking at?

I think people do look to that, especially jcpenney and say they have not used that as a lateral and could use it to back new debt or they could offload it.

I don't understand what we are going to do with this real estate like an anchor at a mall.


Linens and things -- radioshack is closing 1100 stores.

It's ugly.

Maybe we could just fill them with warehouses for amazon.

Thank you so much.

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