RadioShack May Have to Close Stores, Sell Assets

by Christopher Freeburn | February 26, 2013 1:15 pm

RadioShack May Have to Close Stores, Sell Assets

RadioShackPromo RadioShack May Have to Close Stores, Sell Assets[1]Despite warning that it will be forced to increase its debt, sell¬†subsidiaries and shutter stores[2] if it can’t raise sales by next year, shares of RadioShack (NYSE:RSH[3]) rose more than 3% in midday trading on Tuesday

The struggling electronics retail chain posted a fourth-quarter loss of $63.3 million. That included a $67 million charge for the valuation of deferred tax assets. Adjusted earnings came in a 4 cents a share, beating analysts who had forecast a loss of 5 cents a share, Reuters noted.

Still, quarterly sales tumbled 7% from the prior year, down to $1.29 billion. That included an 8% decline in mobile phones sales due to constrained supplies of Apple‘s (NASDAQ:AAPL[4]) iPhone 5.

In a regulatory filing, the company noted that its cash and equivalents dropped to $535.7 million at the end of 2012, down 9% from 2011. Radioshack said it lost $139.4 million last year.

In January,¬†RadioShack announced that it would end its mobile phone sales partnership[5] with Target (NYSE:TGT[6]) in April after the two retailers had failed to agree on terms to extend its management of Target’s in-store cellular phone shops.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/10/RadioShackPromo.jpg
  2. will be forced to increase its debt, sell subsidiaries and shutter stores: http://www.reuters.com/article/2013/02/26/radioshack-results-idUSL4N0BQ4XF20130226
  3. RSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RSH
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. that it would end its mobile phone sales partnership: http://investorplace.com/2013/01/radioshack-to-stop-selling-mobile-phones-at-target/
  6. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT

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