RadioShack Says It’s in Talks With Banks to Manage FinancesCharles Mead and Chris Burritt
RadioShack Corp. is engaged in discussions with investment banks to evaluate ways to strengthen its finances, the company 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,” Kirk Brewer, a spokesman at the Fort Worth, Texas-based company, said today in an e-mailed statement. “That has been the sole focus of these discussions.”
The statement came after RadioShack’s bonds and shares earlier tumbled following a report from Debtwire that it was seeking an adviser to explore ways to fix its finances.
The electronics retailer is “focused on executing our turnaround and serving our customers,” Brewer said. “RadioShack continues to have a strong balance sheet with total liquidity of $820 million at the end of the first quarter.”
RadioShack’s $325 million of 6.75 percent notes due May 2019 dropped as much as 2.6 cents to 69 cents on the dollar, before trading at 73 cents as of 4:18 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Its shares plunged as much as 23 percent before paring the decline to 7 percent, ending the day at $2.63 in New York trading.