Speculation: RadioShack probably files for bankruptcy in February

Posted by K R on

It's a move many have predicted for some time: RadioShack is probably going to file for bankruptcy protection. According to a Wall Street Journal report citing unnamed sources, the cash-poor retailer could submit its filing as soon as February 2015. A RadioShack spokesperson e-mailed Ars to say, "We decline to comment except to say that RadioShack has not confirmed any of the information that is being reported." The Texas-based firm did not deny the Journal’s report, however. Bankruptcy protection wouldn't necessarily mean that RadioShack intends to go out of business. Rather, it would mean RadioShack would be given a certain period of time to rebuild itself and shield itself from creditors. In a similar situation from September 2013, a smaller Kodak emerged from bankruptcy. In December 2014, after RadioShack posted its most recent third fiscal quarter earnings statement, the company revealed a quarterly net loss of over $161 million—and a nearly $400 million net loss on the fiscal year to date. By comparison, RadioShack lost over $216 million in the first nine months of 2013. More via Ars Technica.

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