RadioShack Corp. (NYSE: RSH) has backed away from plans, announced in March, to close 1,100 stores. Two of the retailers’ large creditors refused to support the plan. The cutbacks will be limited to only 200 stores.
Source: courtesy of Radio Shack
In an SEC filing, the company reported:
RadioShack Corporation (the “Company”) previously announced that it was seeking consent from its lenders under the 2018 Credit Agreement and 2018 Term Loan to pursue a program to close up to 1,100 stores. The terms on which the lenders are currently willing to provide this consent are not acceptable to the Company. While the Company may continue to have discussions with its lenders regarding the proposed store closure program, the Company is continuing with a plan to close fewer stores and pursuing other cost reduction measures permitted under the existing terms of the 2018 Credit Agreement and 2018 Term Loan.
According to The Wall Street Journal, the lead lenders are Salus Capital Partners and GE Capital.
ALSO READ: Could RadioShack’s Stock Plunge to Zero?
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