RadioShack Corp. is in talks with hedge fund Standard General LP, which has apparently increased its stake in the company from 7% to 10%, about the possibility of a financing package that would help prevent the electronics retailer from having to file for bankruptcy, sources have told Bloomberg.
The hedge fund would also help renegotiate a $250 million load held by RadioShack, which could help stanch a cash hemorrhage. Standard General recently made moves to rescue American Apparel after the ouster of the retailer's founder-CEO.
Any such rescue deal would entail closing stores, a move that has been thwarted by some of the RadioShack's creditors.
Things are looking dire for RadioShack, which has been thwarted in its attempts to streamline its store count and turn things around. Not to mention, it doesn't help that the outlook for the electronics retail sector is especially grim.