A major RadioShack shareholder plans to invest more cash in the business in order to improve its liquidity.
RadioShack is facing a cash crisis. As of last month it had just $30.5 million in the cash and owed creditors $658 million. Standard General is still discussing the particulars with RadioShack and its other creditors. The hedge fund, along with new, unnamed investors, believe they can buy out RadioShack’s loans and get the company back on its feet.
Standard General raised its stake in RadioShack from 7.08% to 9.8%, making it the single largest shareholder. The investors hope to shore up RadioShack ahead of the crucial holiday shopping season.
RadioShack sells cell phones and wireless service from AT&T, Sprint, and Verizon Wireless alongside other consumer electronics.
