RadioShack Still Looking for Cash
Last Friday, RadioShack filed a registration statement with the SEC for a potential rights offering for up to 150,000 preferred shares at $800 per preferred share as part of a recapitalization package recommended earlier this year by Standard General, the hedge fund that is RadioShack’s largest investor. At the time, RadioShack warned that if it failed to meet certain conditions of the package the company may have to seek bankruptcy protection.
Right now RadioShack is trying to buy time to get through the holiday shopping season. For some reason the company’s executives believe that a good showing during retailing’s biggest season will somehow mitigate the problems the company faces.
The company’s market cap at Monday’s close was just over $39 million after closing at $0.39 on Monday. Shares got a little boost, up 10% to $0.43, Tuesday morning, but FTI Consulting had better have a magic wand in its arsenal.