FollowRadioShack Corp. (RSH) revealed in March that it would close its 1,100 locations, and is currently on track of its plan to close fewer stores due to an obstacle of lender agreements. The Texas-based company has already sought consent from the creditors to fulfil its plan of full closure, despite the unacceptable terms offered. The company having more than 4,000 stores within Mexico and United States, admitted that it has already closes 175 stores and had conversations with the lenders over more closures. As per Joseph Magnacca, the Chief Executive of the company said that RSH has faced challenges from term-loan lenders.
Last week, Lender Salus Capital Partners charged the company of breaching agreements on a term facility worth $250 million but the company denied it. In a note wrote by the analysts of standard & Poor’s Ratings Service, gaining consent from the lenders could be very difficult. Out of $400 million, the company expects a $90 million annual savings to come from asset sales and store closures. The retailer has been left behind when it comes to e-commerce strategy and the mobile revolution such as Amazon.com Inc and Best Buy Co Inc. Net loss has widened 18.5% in the 3rd quarter which ended Nov. 1. Same-store shrank in sales of 13.4 percent. It reaches a straight quarterly decline.
