After the news that RadioShack is in the midst of preparing to file for bankruptcy soon comes more evidence that the struggling chain is trying to get itself set aright: A new report says RadioShack is saving cash by putting off paying rent.
In an effort to scrape together what cash it has, the Texas-based company, the Wall Street Journal cites people familiar with the matter who say RadioShack has delayed payment on the rents of some of its stores for January amid restructuring efforts.
RadioShack could file for bankruptcy protection as early as next month, as reported earlier, after 11 straight quarters of bleeding money.
The company didn’t comment on the rent delays, and it’s unclear which stores out of its 4,300 North American locations (and that’s aside from dealers and franchisees) are involved or how far the delays reach.
One source said the chain has paid its rent on time, at some locations, at least, and there have reportedly been discussions of Sprint acquiring the leases to some of the stores.
“We plan to come out a smaller and stronger brand from these changes,” a RadioShack leasing representative told a landlord in an email cited by the Wall Street Journal.
RadioShack Delays Some Rent Payments Amid Restructuring [Wall Street Journal]
by Mary Beth Quirk via Consumerist
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