Friday, February 13, 2015

"RadioShack Restructuring Head Says Retailer Overestimated Cash" $RSHCQ


A $120 million loan the electronics retailer received from Standard General LP in October didn’t provide as much liquidity as the company thought it would, RadioShack’s Chief Revitalization Officer Harry J. Wilson said at a conference for restructuring professionals in Las Vegas. Cash was reduced by the need to pay past-due accounts. [...]

The leash they had was much shorter than they were led to believe,” Wilson told the lawyers, financial advisers and investors of distressed debt [...]

[H]e was “skeptical” about RadioShack’s options when he was hired to lead its restructuring in October. “I’m not a big fan of physical retailers,” he said.

He said his team identified about $300 million of annual cost reductions that were thought to be enough to get the company through the holiday sales period [...but...] weren’t enough to fix RadioShack. “Holiday sales were disappointing,” Wilson said. “They couldn’t buy inventory” because of liquidity constraints, he said. [...]

Eventually, the company began offering its stores to retailers such as Sprint. “No investor will invest on a hope and a prayer. That’s why we brought in Sprint and talked to others,” he said. “The precipitous decline of this business is really amazing,” Wilson said.


Anonymous said...

New 13G filing by Litespeed Management, L.L.C

Guess they were on the bid the last few trading days?

CP said...

No. That's an old position.