NEW YORK (TheStreet) -- Shares of RadioShack Corporation (RSH) are skyrocketing, up 16.16% to 99 cents in midday trading as the electronics retailer is in talks with its major shareholder, Standard General LP regarding a rescue financing deal to stave off a bankruptcy filing.
See why RadioShack is TheStreet's Move of the Day:
The hedge fund has provided financing for American Apparel Inc. (APP) , and is considering helping RadioShack by issuing debt or equity, Bloomberg reports.
The Texas-based electronics retailer lost $98.3 million in three months ending May 3, and store sales plunged -14% from the same quarter one year ago.
Separately, 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, weak operating cash flow and generally disappointing historical performance in the stock itself."