Radio Shack Plunges On Report Of Bankruptcy
People walk by a Radio Shack store on March 4, 2014 in San Francisco, California. RadioShack announced plans to close over 1,000 of its underperforming stores, approximately 20 percent of its retail locations, as part of a restructuring to be more competitive in retail electronics.
[one_fourth]
[/one_fourth][three_fourth_last]
RadioShack shares plummeted more than 30% Thursday on a report that the company could file for bankruptcy protection reportedly as soon as next month.
The embattled consumer electronics retailer is in talks with a private-equity firm that could buy its assets out of bankruptcy, according to The Wall Street Journal, which cited sources familiar with the people familiar with the matter.
Last month, the Fort Worth, Tex.-based chain reiterated that bankruptcy proceedings could result if its own revitalition plan proved unsuccessful.
On Thursday, RadioShack said that it had no comment other than to say that the company has not confirmed any of the information being reported.
The company had mentioned bankruptcy back in September.
RadioShack has faced losses over the last two years and has closed 175 underperforming stores already in its current fiscal year, which ends Jan. 31. It had announced plans to close a total of about 200 of its roughly 4,000 U.S. stores this year.
RadioShack stock was down 13 cents to 29 cents a share in morning trading.
