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Stock Market & Financial Investment News

News Breaks
June 11, 2014
09:43 EDTRSHFitch: RadioShack 'does not have material sources of liquidity beyond revolver'
RadioShack's weak Q1 results underscore the material challenges in its core business segments with few options left to stem the declines given a tightening liquidity situation, according to Fitch Ratings. Fitch believes RadioShack does not have material sources of liquidity beyond its revolver, as virtually all of its assets have been pledged to its credit facilities. Fitch expects excess liquidity to be very tight as we approach peak seasonal borrowings, which could prompt a restructuring before year end. Absent an agreement with its lenders, it appears that RadioShack will only be able to close 200 stores in 2014, down from its earlier plan to close up to 1,100 stores. In Fitch's view, closing fewer stores will be a drag on profitability and, more significantly, free cash flow, as it will not provide the much-needed funds from inventory liquidation that RadioShack was anticipating. Fitch downgraded the long-term issuer default rating for RadioShack Corp. to 'CC' from 'CCC' on May 15, reflecting the increasing likelihood that RadioShack will need to restructure its debt within the next 12 months. A further downgrade to 'C' would signify that Fitch believes a default at RadioShack is imminent. This would be reflected by further strain on RadioShack's cash flow and liquidity that impedes the company's day-to-day operations.
News For RSH From The Last 14 Days
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November 18, 2014
17:52 EDTRSHRadioShack loan from Monarch off table, Bloomberg says
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14:14 EDTRSHRadioShack loan talks with Monarch hedge fund ended, Bloomberg reports
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November 10, 2014
13:06 EDTRSHRadioShack to open most of its stores on Thanksgiving, Bloomberg reports
RadioShack plans to open most of its stores on Thanksgiving for the first time, reports Bloomberg. According to company spokeswoman Merianne Roth, more than 3,000 Radioshack sotres will open from 8 a.m. to midnight. Reference Link

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