Beleaguered retailer of all things electronics, RadioShack (NYSE:RSH) is one of the poster children for companies running out of time as its business model falls further and further behind the curve. Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZ) are just two of the many competitors that are crushing RadioShack because you can find nearly any item it sells cheaper at Walmart and more easily via Amazon.
RadioShack is bleeding red all over the place, with sales, profits, cash, cash flow and stock price all trending the same way: down.
RSH shares are down nearly 85% over the past year, Chief Executive Officer James Gooch stepped aside in September, cash and equivalents are down around $500 million and the company is saddled with $750 million in debt.
The only good news is that RSH managed to secure a $100 million five-year term loan with Wells Fargo (NYSE:WFC), but at the steep cost of 11%.
According to a Saibus Research report on Seeking Alpha, RadioShack is teaming with China-based Foxconn (PINK:FXCNF) to expand its Chinese store base, and in a worst-case scenario RadioShack could look to Foxconn to take it over. What are the odds of that actually happening?