RadioShack is dead. Or is it? News came out on Monday that General Wireless Operations Inc., which operates as RadioShack, completed a new financing pact that came to a total of $75 million. It almost seems hard to fathom that RadioShack could get its hands on any capital at all after its monumental implosion and bankruptcy. The ties to Sprint Corp. (NYSE: S) may have helped out.
Source: courtesy of Radio Shack
Monday’s financing pact of $75 million was a $50 million Asset Based Lending credit facility led by RBC Capital Markets and a $25 million first-in last-out term loan led by Great American Capital Partners.
RadioShack said that this financing will allow the company “to continue investing in and improving the brand by enhancing its in-store experience, delivering an exciting new product mix of state-of-the-art electronics, and continue developing its game changing partnership with Sprint, building out more than a thousand ‘Sprint Stores at RadioShack’ in locations across the country.”
Ron Garriques, chief executive officer of RadioShack, said:
We have ambitious plans for the new RadioShack, and this financing gives the new and reinvigorated RadioShack the ability to fully implement our strategic plan to provide superior products and services to over 1,200 communities. The new RadioShack is a place where everyone can meet their needs from a broad assortment of consumer electronics, accessories and connected tech. We will carry a wide range of new cutting-edge products and experiences from global brands as well as our exclusive brands that offer our customers tremendous value at great prices.
Does it sound ambitious, considering that this is still RadioShack? The company’s release further said:
Over the past three months, RadioShack has taken several steps to revitalize the brand, renovating many of its stores, updating and streamlining its inventory, and launching new marketing campaigns along with several other initiatives. The company has formed exclusive partnerships with exciting new manufacturers, allowing them to sell popular technology products not available in other stores. In addition, RadioShack’s partnership with Sprint gives its customers access to industry-first mobility leasing plans and the latest mobility devices.
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RadioShack shares are still quoted on the OTC market under the ticker RSHCQ, but investors should know that this is the old company and not General Wireless Operations Inc.
Again, it just seems odd that anyone, at least outside of Sprint at this time, would loan money to RadioShack.
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