Radio Shack filing bankruptcy case. As reported in this blog some time ago, filing bankruptcy was a very real possibility for this company. That possibility has appeared to become reality. The company has consulted with bankruptcy lawyers. The Wall Street Journal has now reported that a bankruptcy case will be filed. The bankruptcy filing could come as early as February. The company has contacted loan providers to help keep the business going through the bankruptcy process. Radio Shack is even talking to a private equity firm that could buy all its assets out of the bankruptcy case. This moment has been a long time coming. The company has been bleeding money. The losses keep piling up. The bills can no longer be paid. Something had to give. Relief had to be sought. Bankruptcy attorneys had to be brought in. The chain was hoping to turn things around over the holidays with strong sales. To no ones surprise, that did not take place. The chain has been struggling for a very long time. The company has been losing money for almost three years in a row. The chain’s downhill slide started back in the 1990’s. The chain lost its way when it changed its core business. It decided to focus less on electronics and pushed selling cell phones. This move was a tragic mistake. Everyone sells cell phones now. The company forgot what brought it to be a household name. It could never recover. The company needs to be bailed out. The jobs of 24,000 people as of late last year are at stake. The hope is the chain that has been around a long time can be saved. Even if that is with new owners. Bankruptcy attorneys will be working hard on this case. America will be watching. A happy ending and fresh start could be waiting after bankruptcy.
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