I’ve been writing about the demise of RadioShack since 2012. I wrote this in February 2013:
Radioshack operates 7,000 locations and employs 34,000 people. Their only chance at survival is to close their 30% worst performing stores immediately. Retail CEOs rarely have the wisdom and reality based thinking to do what needs to be done. Time will tell, but this is just another dead retailer walking.
They will be lucky to make it through Christmas before declaring bankruptcy. There will be thousands more Space Available Signs in strip centers and dying malls across America. When your stock price is 85 cents, it ain’t a long way to zero.
Told ya so.
RadioShack is worthless and weak.
RadioShack sinks 13% after Wedbush calls it worthless
By Ben Eisen
Published: Sept 10, 2014 2:58 p.m. ET
NEW YORK (MarketWatch) — Shares of RadioShack Corp. RSH, -10.68% plunged 13% to 85 cents on Wednesday after Wedbush analyst Michael Pachter cut his price target to $0. Pachter, who lowered the price target from $1, wrote that he expects the beleaguered retailer to enter bankruptcy as part of its turnaround process. “Our price target reflects our expectation that creditors will force a reorganization and wipe out RadioShack’s equity,” Pachter wrote. In June, B Riley analyst Scott Tilghman lowered his price target to $0. The average price target of analysts surveyed by FactSet was $1.13
This post needs correction: “Radio Shack employs 34,000 people”
Corrected version: “Radio Trash employs 34,000 negroes / spics / Pakistani’s”
My other idea is that Radio Trash could partner with JC Penny, and open ’boutique shacks”. Their combined stock price would be more than $1. Then we could watch them go down the shitter together.
Last time I went into Radio Shack was to buy a few parts to build an audible/visual water level alarm for tank at work. After wading through an ocean of cell phone BS they did not have a single electronic part I needed. Not even a project box. They said they could order it for me and I said I no longer had any reason to visit Radio Shack. I did discover a great mom & pop electronics shop in town so Radio Shack will not be missed.
ANOTHER DYING RETAILER WITH 525 STORES AND OVER 7,000 EMPLOYEES WILL BE DECLARING BANKRUPTCY
Wet Seal shares fall further below $1 after disappointing results, outlook
By Tomi Kilgore
Published: Sept 10, 2014 4:58 p.m. ET
NEW YORK (MarketWatch) — Shares of Wet Seal WTSL, -0.22% fell further below the $1 mark in after-hours trade Wednesday, after the troubled womens apparel retailer reported a wider-than-expected fiscal second-quarter loss, citing ongoing weakness in mall traffic and a challenging promotional environment. Excluding non-recurring items, the adjusted loss for the quarter ended Aug. 2 came in at $12.3 million, or 15 cents a share, compared with a year-earlier loss of $1.2 million, or 1 cent a share, and the FactSet consensus analyst loss estimate of 12 cents a share. Revenue fell to $121.2 million from last year’s $137.2 million, and same-store sales dropped 12.4%, while analysts were forecasting $122.7 million and a 10.7% decline, respectively. The company expects a third-quarter adjusted loss of 22 to 28 cents a share, while analysts were projecting a per-share loss of 9 cents. The stock was down 10% at 61 cents in after-hours trade. The stock, which has tumbled 75% year-to-date through Wednesday, has traded below $1 for most of the last four months.
Wet Seal? Is that like a wet pussy?
Q: What does a walrus have in common with Tupperware?
A: They both like a tight seal.
Please help …. …what is a “Radio Shack”?
Loved our TRS-80 computer. We had a high school tech geek from K of P program it to beat the AC casinos at craps and baccarat. 7 guys and 1 girl on our ‘team’ lost several K each but was a sweet hoot. Some fun, eh?
@Stucky Radio Shack was kind of like this
I frequented Radio Shack often over the years. Being in the Radio Broadcasting biz, Radio Shack actually stocked items we used in a Top-40 Radio station, including connectors, wires, electronic components, recording tape, and batteries. Once upon a time I owned a Radio Shack reel to reel deck, and other assorted Radio Shack products.
I’ve been to my nearest Radio Shack twice in the past year. Both times it was empty sans 2 very bored employees. I went there for specialty batteries, which were way overpriced.
Darn, where else where I buy a new cell phone?
FAT LADY IS SINGING
RadioShack seeks more capital as results miss mark
By Michael Calia
Published: Sept 11, 2014 7:35 a.m. ET
RadioShack Corp. said it is exploring options to seek new capital and restructure its debt as the struggling electronics retailer’s debt load grows and turnaround efforts continue to sputter.
Shares edged up slightly premarket trading on the announcement, while the company posted results that missed analysts’ expectations as sales at existing locations fell 20%.
“While we are advancing on many fronts, we may need additional capital in order to complete our work,” Chief Executive Joseph C. Magnacca said Thursday. “As a result, we are actively exploring options for overhauling our balance sheet and are in advanced discussions with a number of parties.”
The CEO said its options may include a debt restructuring, consolidation of its store base and significant cost cuts. He warned, however, that details of a capital plan aren’t yet final, and some of its alternatives would require consent from its lenders.
Mr. Magnacca didn’t mention the possibility of seeking bankruptcy protection, which has been on the mind of investors for some time. A Wedbush Securities analyst on Wednesday issued a dire warning for the company, saying it is poised for bankruptcy.
RadioShack ended the quarter with $182.5 million in liquidity, including $30.5 million in cash and cash equivalents. Its debt was $658 million, which matures in 2018 and 2019, up from $614.5 million at the end of the previous period.
The company has struggled for years with heightened competition from websites and low-cost rivals. RadioShack tried to shut down at least 1,100 of its more than 4,000 stores in the U.S. this year, but some of its lenders fought the move. The company can only close 200 stores this year without lenders’ consent.
It hired Mr. Magnacca, a former Walgreen Co. executive, to update its dated image, shed old products and get the company on firmer financial footing. But weak sales have hampered that overhaul.
For the period ended Aug. 2, RadioShack reported a loss of $137.4 million, or $1.35 a share, compared with a year-earlier loss of $52.2 million, or 51 cents a share. Excluding one-time items, the company posted a loss of $1 a share.
Revenue decreased 22% to $673.8 million.
Go and try to buy a single resistor at Shadeo Rack…
You will be greeted by some wide-eyed iStupad who cant use a voltmeter.
“…The company has struggled for years with heightened competition from websites and low-cost rivals. RadioShack tried to shut down at least 1,100 of its more than 4,000 stores in the U.S. this year, but some of its lenders fought the move. The company can only close 200 stores this year without lenders’ consent…”
Yes, it is “low cost” websites and “rivals.”
THERE ARE NO “low cost” rivals dealing in the items RS used to sell.
There entire problem was when they went from being a Nerd-Centric store to a broader market store.
I have literally gone on the web, found the part I needed IN their inventory, went 20 miles to the store that showed it IN inventory, to be greeted by employees whom did not even know that their inventory was available on the web. Nor could they find the part, nor could they figure out how to get it into their hands to sell to me.
Stupid is pretty freakin’ thick now. It surrounds us in all arenas, at all levels, and shows absolutely no indication of reversing.
What freaking moron would “invest” a DIME in this failed business model?
Reality is the number of stores selling the SAME inventory is great, the number of former customers whom continue to “tinker” is shrinking to all time lows, and there is no saving it.
Which means either WDC or Wall Street will be happy to help and waste a few billion more.
Surrounded by tools.