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Author Topic: Radio Shack Closes Under $1 For First Time  (Read 8887 times)
KD0REQ
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Posts: 1050




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« Reply #15 on: June 23, 2014, 06:43:06 PM »

last time they poked their heads out of the bunker, they had around $50 million to spend.  beginning of the year, it was something like $280 million. that's 3 to 5 months burn.  closing those 200 stores announced will impact that.  just saying...
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K0OD
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Posts: 2591




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« Reply #16 on: June 23, 2014, 08:03:50 PM »

"that's 3 to 5 months burn"

They had $61 million. Yes, probably about $50 million now. Revenues are plummeting. Shelves are emptying. Old projections weren't based on them paying for merchandise upfront. It's normal to pay 30 days after delivery. Or legions of lawyers or BK consultants. Did I mention lawyers?

Unique about Radio Shack is the utter absence of competitors standing by to grab all or part of their stores even at a bargain price. I wonder too what their collapse would do to their suppliers... for example, the firms overseas who paste two resistors on those cards. Problems must be rippling thru Shack's vertical integration.

It's not at all like closing a large chain of mall clothing shops or shoe stores. There you change the sign over the door and a new owner takes over a week later.

Filing BK will get RSH cash and stave off litigation: For those new lenders it will be low risk Debtor in Possession money to keep the lights on until Christmas, and during the monumental task of shutting down 4,000 stores. 
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KA5PIU
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« Reply #17 on: June 23, 2014, 09:36:04 PM »

Hello.

This is, if they have any good employees left.
Just in San Antonio, 2 employees just quit to go to Six Flags, one went to Auto Zone.
Everyone is scrambling!
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K1CJS
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Posts: 6061




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« Reply #18 on: June 24, 2014, 06:43:13 AM »

Somebody sneezed.  Stock quote today is 83 cents per share--up 1 cent!
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WA2ISE
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Posts: 181




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« Reply #19 on: June 24, 2014, 07:13:39 AM »

...

Death Spiral. BK probably in days.  

What, Burger King too?   Shocked...  Oh wait,  you mean bankruptcy    Grin

About a year ago, a RS in Alexandria in a mall suddenly disappeared. One week it was fully stocked, and I went back to pick up something (some parts) and the site of the store was completely empty.  Sudden death...
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KA5PIU
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« Reply #20 on: June 24, 2014, 07:47:59 AM »

Hello.

The stores on Broadway in San Antonio are closed, both of them.
Turns out that there was a delay on getting pay checks out, and now this?
Some employees are just not showing up!
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KD0REQ
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« Reply #21 on: June 25, 2014, 12:43:21 PM »

aaahhhh, that's telling.  the one thing a business absolutely, positively has to do is pay the help.  Ol' San Antoine is close enough to the headquarters that somebody could drive out and set things aright the same day.  even assuming the store managers goofed or left.

assuming anybody at HQ is minding the business... a concept not subscribed to generally by posters here...
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K0OD
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« Reply #22 on: June 25, 2014, 08:14:33 PM »

It's very unlikely employees aren't being paid or that they would walk out due to that threat. In liquidation, back salaries are very high priority. Almost up there with lawyer pay.  Smiley

REQ: note that debtor in possession financing is senior debt incurred AFTER bankruptcy is initiated.

Reading Tandy/Radio Shack's long history, one wonders whether there's anything they haven't tried to right the ship, often several times. Remember when they also owned Color Tile and the leather stores? There was Incredible Universe and Computer City (acquired by Fry's) and a cell phone chain. Other concepts have been tried by Tandy overseas.

For those who want to speculate in a different way, RSH has bonds that mature in 5 years. They sell for about 40% of par value with a current yield of about 20%.

I think S&P rates RSH bonds at CCCrap. 

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KA5PIU
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« Reply #23 on: June 26, 2014, 12:25:16 AM »

Hello.

I talked to the lady who took over the one store.
Radio Shack has not issued commission checks for months!
This has nothing to do with a bankruptcy, it is just that radio shack has not issued any Spiff checks for months.
Unlike the regular pay checks, bonus and Spiff checks come from the district office.
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K1CJS
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« Reply #24 on: June 26, 2014, 07:31:11 AM »

...About a year ago, a RS in Alexandria in a mall suddenly disappeared. One week it was fully stocked, and I went back to pick up something (some parts) and the site of the store was completely empty.  Sudden death...

It happened in my general area too--twice.  Turns out that RS had moved from inside a mall on both occasions to an outdoor shopping plaza nearby.  Malls are a dying thing even since the internet, and the rents in them have gone high--higher than RS wanted to pay.
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KA5PIU
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Posts: 446




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« Reply #25 on: June 29, 2014, 09:57:52 AM »

Hello.

Radio Shack moved from a low rent owned store to a high rent store a few years ago.
Then they started to move into strip centers, lower rent, about the time they started to sell car stereos and phones.
They still sell phones.
But, I can sell phones from a tent in the parking lot, or at a flea market.
I get set up, do my thing at a flea market, sell CB and CB accessories.
Jail break phones, flash to a new carrier, and run free ham radio classes in Spanish.
I breath fire and dance with machetes and in exchange I pay no rent.
In short, I am undercutting Radio Shack, and have one market they had and one market they have.
Since I do not work under contract to any cellular carrier, I can do almost anything, and do!
I took my lessons from "Madman" Muntz, a true artist at sales.
Muntz would take parts out of TV,s to make new sets cheaper.
I take parts out of used TV,s to make cheaper radios.
https://en.wikipedia.org/wiki/Madman_Muntz
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W9FIB
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Posts: 956




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« Reply #26 on: June 29, 2014, 03:22:14 PM »

...About a year ago, a RS in Alexandria in a mall suddenly disappeared. One week it was fully stocked, and I went back to pick up something (some parts) and the site of the store was completely empty.  Sudden death...

It happened in my general area too--twice.  Turns out that RS had moved from inside a mall on both occasions to an outdoor shopping plaza nearby.  Malls are a dying thing even since the internet, and the rents in them have gone high--higher than RS wanted to pay.

Sometimes we do agree on some things.  Wink

Similar here, always looking for cheaper places when the lease is up.
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