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RadioShack AO Message Board

  • still_my_dime still_my_dime Oct 21, 2013 5:50 PM Flag

    WHY?

    The numbers suggest that RSH is a company whose time has come and gone. That conclusion is certainly reinforced by a store or website visit. Within a finite period, Amazon and Walmart will offer same day delivery which will be the final nail.

    So the the question is WHY? The GE people are smart. They don't throw away money. What do they plan to get here? Are they simply financing Christmas inventory and receivables or credit card financing at a normal but risk-adjusted rate of return? Are thy looking for a preferred position in bankruptcy to grab the real estate assets and leases?

    What is going on here?

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    • I think you hit it on the head. If they clear away all the others they own the joint lock stock and barrel. Make no mistake they will be in control of the company and if they do not like the direction the can force the" strategic alternatives direction" aka sale of the company. GE capitol was the lead finacer os Circuit City....Consolidated Freightways.....dozens of companies that ultimatly closed.

      They may have some room but not much. I cannot wait to see the rate and terms.

    • First ,, there is no financing deal,, it's a stock scam.. Just a heads up,, there is no real estate and for sure in this case the leases are a liability!

      • 1 Reply to imarat21
      • Disclosure: I own GE stock; I do not own RSH stock.

        I'm guessing that the story is true; otherwise GE would have denied it by now. However, the article also says that GE is financing inventory which contradicts a press release that states RSH is trying to get rid of obsolete inventory to buy new merchandise Perhaps the line of credit is for new inventory only but based on history, there is no assurance that RSH will be able to actually sell it and, as we know, this stuff will become obsolete very quickly.

        When I was much younger, Radio Shack was a weekly stop. My CB radios came from there; so did many cables, batteries and other electronics. It was fun to visit. Now, it is a noisy, expensive, shopworn kind of a place. Too bad.