NEW YORK (AP) -- Shares of electronics retailer RadioShack Corp. dropped sharply Thursday after a report that the struggling electronics chain is mulling hiring a financial adviser to help the company improve liquidity.
Online business publication Debtwire reported that the company plans to take pitches from financial advisers in coming weeks, citing unnamed sources "close to the matter."
In a statement, the company said it is focused on executing its turnaround.
"RadioShack continues to have a strong balance sheet with total liquidity of $820 million at the end of the first quarter. Like many companies, we have discussions with investment banks from time to time to help us evaluate ways to further strengthen our balance sheet and manage it efficiently. That has been the sole focus of these discussions."
Shares fell 20 cents, or 7.1 percent, to close at $2.63, recovering much of an earlier plunge of 23 percent. The stock has traded between $1.90 and $4.28 over the past 52 weeks.
RadioShack and other electronics retailers are facing a tough environment, with increased competition from online stores and discount stores like Target and Wal-Mart expanding their electronics sections. The company is seeking to reverse years of slumping sales under its new CEO Joseph Magnacca, who was hired in February, by revamping stores and shaking up management.
In its most recent quarter, Fort Worth, Texas-based RadioShack said in April that its first-quarter loss widened to $43 million, as revenue fell 7 percent to $849 million.
It ended the first quarter with total liquidity of $820 million, including $435 million in cash and $385 million in available credit that expires in Jan. 2016. Its total debt was $712 million at March 31.
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