Dive Brief:

• RadioShack Thursday will release Q2 results that will miss revenue and earnings estimates, and the retailer will likely soon file for Chapter 11 bankruptcy, according to investment firm Wedbush Securities. 

• UPDATE: Investment firm UBS AG is reportedly working with Standard General LP to secure loans that would allow the electronics retailer to pay down its debt, build up inventory needed for the holidays, and change terms so that it can close the stores it says it must as part of its turnaround.

• The Wedbush report notes that all electronics retailers, including Best Buy, are facing traffic and sales declines similar to those of RadioShack.

Dive Insight:

This past spring, RadioShack’s leading lenders put the struggling retailer into a bit of corner with their opposition to its store-closing plans.

“The creditors clearly are in control of the ship, and the ship is sinking,” Wedbush analyst Michael Pachter said in his report. UPDATE: An infusion of cash and changes to those limiting terms could help the retailer avoid bankruptcy and provide another chance at success in turning things around.