According to The Wall Street Journal, RadioShack is still in negotiations with its lenders regarding plans to close up to 1,100 stores across the U.S. The retailer's credit agreements only allow it to close 200 stores without approval of its lenders.
RadioShack is reportedly still planning on closing stores, and it now looking to close just 200 locations. Some landlords have reportedly agreed to lower rents to keep some stores open.
Some lenders may want RadioShack to close as many as 2,000 stores, or almost half of its 4,300 total locations.
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TheStreet Ratings team rates RADIOSHACK CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate RADIOSHACK CORP (RSH) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."