RadioShack considers hiring financial adviser: report
NEW YORK (Reuters) - RadioShack Corp (RSH.N) shares fell 7 percent on Thursday after a report the electronics chain is considering hiring a financial adviser as debt comes due and sales are falling.
RadioShack plans to entertain pitches from financial advisers in the coming weeks as it faces looming debt maturities, escalating cash burn and bloated inventories, according to trade publication Debtwire, citing unidentified sources.
"Like many companies, we have discussions with investment banks to help us evaluate ways to further strengthen our balance sheet and manage it efficiently," company spokesman Kirk Brewer said. "That has been the sole focus of these discussions."
The retailer has $216.4 million of convertible notes that come due on August 1, it said in an April 24 securities filing. The company also reported $434.9 million in cash and said it was able to access $384.9 million under a credit facility.
The operator of more than 4,000 stores has struggled with falling sales that have weighed on its profits. Sales fell 7.6 percent in the first quarter of 2013 from a year earlier as it shuttered weaker stores and faced stiff competition from online retailers.
RadioShack brought in turnaround firm AlixPartners last year to provide advice with inventory and distribution, according to Debtwire.
RadioShack, whose shares hit a 52-week high of $4.28 per share in May, closed down more than 7 percent at $2.63 on Thursday. They had gone as low as $2.19 earlier in the day on the New York Stock Exchange.