Does RadioShack Even Deserve To Be Rescued?
New York, NY – GDP INSIDER – 10/03/2014.
This article discusses the rescue financing of RadioShack Corporation(NYSE:RSH), a struggling consumer electronics retailer.
If you were to ask the average American consumer to name the biggest names in consumer electronics, RadioShack Corporation(NYSE:RSH) would most certainly not be the first, second, or even third name to pop up on anyone’s list. Instead, you’d hear names like Walmart, a discount department store, Amazon, an online marketplace, and Best Buy, which refers to itself as a “technology showroom” and is the only company on this list that actually specializes in consumer electronics. Naturally, Best Buy is much larger than RadioShack, a store consumers will find occupying one small spot in a large strip mall.
Despite the company’s disadvantages, however, the Texas-based company has reached an agreement with Standard General LP to refinance the company for $590 million. RadioShack will continue to live on as the company attempts to remodel its numerous stores in time for the upcoming holiday season.
One must wonder what strategy RadioShack intends to employ for both Black Friday and Cyber Monday, shopping days that are regularly dominated by the aforementioned largest names in American consumer electronics.
RadioShack finished Thursday’s trading at a closing price of $0.99. Once upon a time, a $0.016 gain would not even be news for this previously-dominant company. Today, any type of increase, however small it may be, is great news for this struggling company.
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