America's second-largest electronics chain RadioShack cash or declared bankruptcy

RadioShack, America's second-largest electronics chain, announced in Thursday that it was supporting the company's finances through several negotiations and was expected to announce a deal shortly. But RadioShack also warned that the company would soon run out of cash reserves and would be forced to declare bankruptcy if the talks failed. RadioShack currently has thousands of retail outlets in the United States, but has long been in recession. RadioShack previously published a report that the company's single store revenue this summer fell 20% year-on-year. RadioShack said that as of August 2 this year, the company's cash reserves have been reduced to 30.5 million U.S. dollars. According to 4,485 retail outlets, each retail store has a cash reserve of about 6800 dollars. But according to the bank's credit line to RadioShack, the company can still use 152 million of billions of dollars in loans. Consumers are increasingly bypassing physical retail outlets to buy electronics from the Internet, and RadioShack's mobile business is starting to get into trouble, making RadioShack's performance harder this year. With the advent of the crucial holiday shopping season of the year, the resources available to RadioShack are becoming scarce. In a Thursday earnings call, RadioShack chief Executive Choy Magnaca (JOE,MAGNACCA) did not discuss the company's performance with analysts. Magnaca said RadioShack had already negotiated with many Parties to support the company's balance sheet. RadioShack's current options include short-term recapitalisation, the sale of companies, or debt restructuring. However, Magnaca also warned that the details of the capital plan had not yet been finalized and that some of the proposals still needed to be backed by corporate creditors. If the talks fail, RadioShack will have to go to the bankruptcy court and may even be forced to liquidate. In the last quarter ended August 2, RadioShack's overall revenue fell 22% per cent to $673.8 million trillion, while the company's net losses widened from $52.2 million trillion a year earlier to $137.4 million. RadioShack has been one of the preferred places for consumers to buy electronic products, but in recent years it has been unable to confront the challenges of e-commerce companies and low-cost rivals. RadioShack earlier from Walgreen company to Magnaca, hope he can reshape the company image, let the company have more solid financial foundation. But weak sales have hampered the RadioShack restructuring process. RadioShack had previously planned to close at least 1100 U.S. retail outlets this year, but had been rejected by some creditors. Without the creditor's consent, RadioShack could only close 200 retail outlets in the United States this year. RadioShack's creditors include General Finance (Ge,capital), Corporate,retail,finance and SALUS,CAPITAL,PARTNERS,LLC.