RadioShack may yet be saved

RadioShack may yet be saved
A hedge fund, and one of RadioShack’s largest investors, Standard General, increased its holdings of the troubled electronics retailer, owning 9.8% of the company and is now the largest shareholder.

Standard General also said that it, along with a select group of new investors, have been negotiating with RadioShack’s creditors to buyout the company’s loans. As of last month, RadioShack had debt of about $658 million sitting atop a market cap of less than $100 million, and about $30 million in the bank.

Following the announcement of the new iPhones, RadioShack said it might have to file for bankruptcy protection if it could not reorganize its finances. Despite should circumstances, RadioShack was among the many retailers in the US that took pre-orders for, and offered incentives to customers who wanted the new iPhones.

RadioShack has been working with banks and investors, including Standard General, to shuffle money and expenses around, including aggressively closing over a thousand retail locations. Those plans have not been implemented smoothly though, and investor pressure caused RadioShack to slow down the store closure.

These recent moves by Standard General may also be a move to further recapitalization and a possible future takeover, or at least an even larger stake in the retailer.

source: Reuters

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20 Comments

1. Planterz

Posts: 2120; Member since: Apr 30, 2012

Remember when you could go to Radio Shack and buy components to build or repair an actual radio? Probably not, if you're under 30.

7. sgodsell

Posts: 7223; Member since: Mar 16, 2013

They should go back to those roots. They should also offer things like adreno's, raspberry pi's, Intel Edison's, and other boards as well as other components.

9. engineer-1701d unregistered

to survive they need to sell iphone and other screen repair kits and other repair parts computer games pc boards ram etc

16. thequota

Posts: 43; Member since: Apr 02, 2013

they carry arduenos and rasperry pis and other components in the store.

2. randpost

Posts: 6; Member since: Sep 24, 2014

Now RS is a terribly overpriced store that has a little bit of everything but not enough of any one thing. I never get what I need when I go there and thus I never go there any more. They need more focus.

3. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Trying to find a semiconductor is a near impossibility anymore. Now they carry stuff for consumers rather than hobbyists. But even when they did, shopping there was like buying gold. Now they carry patch cords, cell phone accessories, and electronic toys for the kids, and not much else really. And as far as their consumer electronics in the past, the "Optimus" brand, all they did was have name brand manufacturers slap the Optimus name on their existing products. I remember seeing a VCR in there that was identical to my Toshiba unit, right down to the remote, but it had the Optimus name on it and it cost $50 more than what I paid for my Toshiba elsewhere. IIRC Sanyo was another company who also rebranded products for them. They used to be decent for certain things in a pinch, but I honestly can't remember the last time I was in a RadioShack.

6. ojdidit84

Posts: 462; Member since: Jul 16, 2011

I worked for RadioShack for 4.5 years. When I started, shares were decent, we got all of the customers that were pissed off with the service they got at Circuit City, Best Buy, Sprint/VZW/ATT stores. They would come to us for in depth help. Our component prices were relatively low and we were still making a killing in profit on most of the parts with the markup they received when a lot of the components were cents on the dollar. Things like Monster cables sold for $130 and only costed us $7. After a certain point, people stopped coming in for small components and wanted to shop in stores with large selections where they could see and play with everything right there and not be told that we only had certain things online and not to mention the fact that they'd cost a considerable amount more than the big box stores on top of that. After Circuit City went bankrupt, people were already saying screw RadioShack and went in droves to shop at the other big stores like Best Buy or Fry's or buy online. I went into a RadioShack a few weeks ago to get a ceramic fuse for one of my tv's and took a gander at the prices of some of the things they had. It seems instead of searching for a strategy to compete with the big box stores, they've just kept inflating the hell out of their prices. And they wonder why they stay empty. RadioShack still hasn't figured out a strategy to market themselves and pull themselves out of the slump they've been spiraling into since 2004. I hope they can recover but I have mixed feelings after them slashing manager bonuses and commissions for managers & salesmen for 3 straight years before I left.

12. volvoV70guy

Posts: 13; Member since: Jun 06, 2014

Commission, lol. I interviewed there a few months ago and they offered me minimum wage. I was shocked. They also wouldn't give me a solid answer about how many hours they'd give me.

13. ojdidit84

Posts: 462; Member since: Jul 16, 2011

Commission used to be pretty awesome. Especially on wireless and "premium" accessories like Monster cable. I guess they don't even do commission anymore... lol

14. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

My brother worked there for a year when he went to college, and he raved about getting commission and employee discounts. That year at Christmas everyone's gifts from him were from RadioShack.

18. thequota

Posts: 43; Member since: Apr 02, 2013

its 2% which isnt to bad for the job could be better. but with good sales you can make about 9.50 - 10 a hour here in texas which is about what other places get

20. ojdidit84

Posts: 462; Member since: Jul 16, 2011

Wow... That's terrible compared to what it used to be. When I left there, we were getting 7-15% commision depending on what it was that we sold and we made a killing on spiffs from wireless sales.

22. thequota

Posts: 43; Member since: Apr 02, 2013

yeah that 7-15% commision didnt help the company at all infact it hurt it and the spiffs we got rid of those and now it falls in the commision of full handset value. they had some very bad ceos which ruined the company and the new one right now is trying to pick up the mess.

4. oueighteen95

Posts: 26; Member since: Dec 20, 2011

I love how everyone complains how Radioshack doesn't have what they used to, if all they sold was components and parts they would of been out of business years ago. I'm not saying RadioShack did a good job competing with everyone else but when you run a company that specializes in electronics, you have to change with the times. Trust me, a very small percentage of people still have a interest in buying component parts and most of those people buy them online. And to all the people complaining that they are overpriced, yea they are a little bit but every retailer is to a point, its called OVERHEAD.

5. Planterz

Posts: 2120; Member since: Apr 30, 2012

I'm not complaining, I was waxing nostalgically. Now, the only reason to go inside a Radio Shack is to buy an aux cable or adapter or something of that sort because you need one NOW and can't wait to have one shipped from Amazon or off eBay for far cheaper. Everything is overpriced. They force their staff to be overly pushy about sh!t you didn't go there for. I've gone to Radio Shack for a couple things, but only because it's half a block from my apartment, while the nearest Best Buy/Wal*Mart/Target is miles away.

8. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Charging $50 for their Optimus brand VCR over the name brand, which are identical products except for the name, is a little overpriced? And this was 15 years ago, that was a bigger difference back then. A little overpriced is an understatement. Every company has overhead, but there's overhead, and then there's gouging. Their patch cables are extremely over priced for what they are, especially compared to the competition. But I will agree with you that buying online is killing RadioShack. Especially when people go on there and see how much cheaper costs are compared to what RadioShack was charging them. The internet has allowed people to become better informed shoppers.

10. ojdidit84

Posts: 462; Member since: Jul 16, 2011

^This. The only reason I bought stuff from RadioShack was because of the 30% (sometimes 60% discount) on some things. And sometimes my old manager would give me his discount after I left. After he left, I took my ass to Fry's if I REALLY needed something or bought it online if I could way. For the little bit of business that they generate, they need to become more competitive, not gouge the hell out of their customers with prices 25-50% higher than their competition in Best Buy/Fry's.

11. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

They need to upgrade stores, and inventory. However, one of their biggest problems, prices. We have a store in the plaza, about 300 ft. away from a Walmart; shack prices range from 20-30% higher than Walmart.

19. thequota

Posts: 43; Member since: Apr 02, 2013

just saying man grab a charger from walmart and grab a charger from radioshack and see which one last longer im not saying radioshack is the best priced but its not garbage electronics like walmart . and look up radioshack concept stores. and they changes pretty much all stores look

21. ojdidit84

Posts: 462; Member since: Jul 16, 2011

Are they still converting stores to C3? That's what they were doing when I left. They need to continue with concept changes like that on a more frequent basis and roll them out to all of the stores. Not just a select few.

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