RadioShack Press Release Comment On Business Performance $RSH

This was from the press release:

"An additional critical cost reduction measure involves the closure of up to 1,100 stores so that the Company can focus on its profitable, go-forward locations. Earlier this year, RadioShack asked the term lenders for consent to close these stores, which the Company estimates would have enhanced overall EBITDA by about $83 million and created an additional $87 million of liquidity from reduced and focused inventory levels. They refused unless the Company paid significant fees, prepaid a substantial portion of their debt and agreed to other covenants and concessions that the Company believed to be unreasonable, even though these store closures would have clearly benefited the Company and its stakeholders."

A correspondent commented,

"[T]hat is about $75K per store, not clear if that is annualized run rate or the last 9 months of the year. Either way, they are still quite a ways short of erasing the greater than $100MM loss per *quarter* that they’ve been experiencing for the last year. Lot of wood to chop here."

It is amazing that RadioShack and the lenders couldn't come to an agreement to close these stores.