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RadioShack AO Message Board

  • kens_syco kens_syco Aug 1, 2013 5:51 PM Flag

    S&P says RSH revolver wont be available and cash diminished..ITS OVER !

    Default within 12 months,

    It will be soner than that folks. They will be out of cash well before Black Friday and no money to borrow from.

    Its over

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    • Standard & Poor’s downgraded RadioShack’s corporate debt on Thursday to CCC from CCC+, saying the Fort Worth-based electronics retailer runs the risk of running low on cash in the next year.

      The New York rating service said RadioShack continues to perform poorly and that “a default could occur within 12 months, absent major business turnaround or increased liquidity.”

      “We are revising our view of liquidity to ‘weak’ from ‘adequate’ because we believe RadioShack will have diminished cash and revolver availability as working capital investment rises for the holiday season and the business continues to use cash,” said the report.

      • 1 Reply to bfe2412
      • Last week, RadioShack reported a wider-than-expected second-quarter loss and said it had hired a turnaround consultant to help develop new strategies. Since joining RadioShack in February, new chief executive officer Joseph Magnacca has been shaking up management and developing a new store plan that will roll out for the holidays.

        Magnacca has insisted that the company has enough cash to meet all of its debt payments this year and said a recent round of meetings with bankers in New York was a normal course of business. It hired Peter J. Solomon Co. as its investment banker to help with financing issues.

        Asked for comment on the S&P downgrade Thursday, RadioShack released a brief statement noting that its 2013 convertible notes have been paid off in full, and added: “We used our cash balance to repay these notes.”

        S&P said a credit upgrade is possible down the road if RadioShack pulls off a “a transformative series of events — such as an overhaul of product mix, a restoration of margins, and a return to sales growth — that improve [its] competitive position and credit measures.”

    • wow, what would you do with your life Radio Shack went bankrupt