RadioShack Corp. reported today it is in discussions with investment banks to examine ways to strengthen its finances.
“We continue to have a strong balance sheet with total liquidity of $820 million at the end of the first quarter,” the statement said. “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. As we noted on our last earnings call, we are focused on executing our turnaround and serving our customers.”
Fort Worth-based RadioShack issued the statement after the company’s bonds and shares fell following a report from Debtwire that the company was seeking an adviser to work on finances.
In a note from Janny Financal Markets analyst David Strasser on Thursday, he said: “We do believe the company could be talking to financial advisors, which would make sense for a struggling stock, a company at a cross roads with new management looking for advice. Our analysis, shows that RSH has sufficient cash to get through the current year and well into next year, even with weak results, and still pay down the convert due in August of $216 million.”
On June 29, RadioShack opened the first of several new concept stores in Manhattan, the first indication of the direction new CEO Joseph Magnacca is taking the company.