NEW YORK–RadioShack warned that it may need to file for Chapter 11 bankruptcy reorganisation if it can't rework its debt or find another way to ease a cash crunch.The struggling retailer said in a regulatory filing that it is in talks with its lenders, bondholders, shareholders and landlords to fix its balance sheet, but if it can't, it will try to file a prepackaged bankruptcy.
RadioShack, which is based in Fort Worth, Texas, has been working on turning around its business for the past 18 months. The company's efforts have included cutting costs, renovating and closing stores, and shuffling management. It reported another quarterly loss on Thursday on lower revenue.
CEO Joseph Magnacca said efforts to fix the company's problems could include debt restructuring, closing more stores and other cost-cutting measures.The company reported US$30.5 million in cash and cash equivalents on hand as of August 2. That's down from US$179.8 million at the end of last year.
AP