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Radio Shack Reportedly Seeking Financing to Win Over Vendors

October 07, 2013, 07:44 AM
Filed Under: Retail

According to Bloomberg News and the Fort Worth Star-Telegram, RadioShack plans to raise money by the end of 2013 to persuade suppliers to support its turnaround effort which sites information obtained from people familiar with the matter.

The consumer electronics retailer has enough liquidity to last through 2014 and is arranging new financing to show suppliers that it has all the capital needed for its turnaround, said the sources.

Joe Magnacca, who took over as chief executive officer in February, is counting on vendors to supply exclusive products to help RadioShack distinguish its offerings from rivals. The article from the Fort Worth Star-Telegram notes RadioShack has posted six straight quarters of net losses and declining sales as customers defect to big-box retailers.

The article notes that said in July, Radio Shack hired AlixPartners and investment bank Peter J. Solomon to explore refinancing debt. At the same time, the retailer named Holly F. Etlin, one of AlixPartners’ managing directors, the retailer’s interim chief financial officer.

View the story in the Fort Worth Star-Telegram here.

A Reuters article from Aug. 14 noted the struggling electronics chain, was looking to refinance its debt by securing new, lower-cost loans by the end of the year. The process was reported to be in its early stages and no deals had yet been proposed.

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