RadioShack is considering whether or not to file for Chapter 11 bankruptcy protection as its cash reserves dwindle.
The company ended its most recent quarter with just $30.5 million in cash on hand, with debts totaling $658 million. It has lost money 10 quarters in a row as electronics buyers shun the chain for larger retailers or the web. Filing for bankruptcy would help protect RadioShack’s remaining cash reserves, and could set the stage for a reorganization of the firm. The company is also weighing taking on investments and cited liquidation as a last resort.
Earlier this year RadioShack announced plans to close 1,100 stores, but later reduced that number to 200 after investors balked. RadioShack sells wireless service from AT&T, Sprint, and Verizon Wireless, as well as several prepaid brands.
