Investors Give RadioShack a Second Chance
Oct 3, 2014, 2:24 PM by Eric M. Zeman
RadioShack has forged an agreement with Standard General and other investors to refinance about $585 million in debt. Standard General now stands as RadioShack's largest shareholder, with a 10% stake in the company. Refinancing its debt provides RadioShack with some much-needed breathing room and should help shore up its cash reserves. Before today, the company's cash holdings had dwindled to about $30 million. RadioShack, which sells smartphones, tablets, and other consumer electronics, will still need to execute a turn-around strategy to reverse sagging sales.
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Comments
Maybe now they can afford to close those stores...
Its crazy to me that they said they didn't have enough money to close money-losing stores, but maybe this will help. Then they can transfer the closed stores' inventory to other stores that might actually sell them.
Then they can stop making so many bad SWAT sales that they know are going to be returned in a day or two when the phone they really want comes in stock.
Its bad sales and cellular returns that are killing radio shack, if they had their cellular game tight nothing else would matter, one fully qual'd new activation makes more profit than everything else they sell in the store that entire day. And the opposite is also true for returns, one return kills the stores profit for the day.
Then they can stop making so many bad SWAT sales that they know are going to be returned in a day or two when the phone they really want comes in stock.
Its bad sales and cellular returns that are killing radio shack, if they had their cellular game tight nothing else would matter, one fully qual'd new activation makes more profit than everything else they sell in the store that entire day. And the opposite is also true for returns, one return kills the stores profit for the day.
I find what you said interesting. I am not familiar with the operations of Radio shack. Could you explain in a little more detail the way they handle phone activations and why there are so many returns?
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