NEW YORK (TheStreet) -- Shares of RadioShack Corp. (RSH) are falling by 11.74% to 83 cents in early afternoon trading on Wednesday, after Wedbush Securities said the consumer electronics retailer could file for bankruptcy soon, which would make the stock worthless by the end of the year, Reuters reports.
Wedbush said it expects "creditors will force a reorganization and wipe out RadioShack's equity," Reuters added.
Wedbush cut its price target on RadioShack to $0 from $1.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
RadioShack was once a popular place to buy electronics, but Reuters suggests its financial issues began as the company failed to keep up with the likes of Amazon (AMZN) and Wal-Mart (WMT) as a go to spot for mobile phone purchases.
In June, RadioShack reported its ninth straight quarterly loss.
RadioShack attempted to close 1,100 stores this year, but its investors didn't agree with the company's plans, forcing it to limit the number of closings to 200 stores, Reuters noted.
Three weeks ago, RadioShack saw its stock spike after it was reported its major shareholder Standard General LP was discussing providing a rescue financing package that would help the company avoid a bankruptcy filing, Bloomberg reported.
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 multiple weaknesses, 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."