Greenberg: RadioShack's Pathetic Spin Attempt in the Fine Print

This article appeared at 8:53 a.m. EDT on RealMoney Sept. 11.

SAN DIEGO (RealMoney) -- Shame on RadioShack  (RSH) for leaving the best part for the fine print that most people probably would've missed. 

To read the text of its earnings release today is to read about a company discussing "debt restructuring," closing stores and, in general, a "recapitalization." But, above all, it's a company discussing "a solution to maximize the value to all of our stakeholders" 

To anybody who has been around the market for any amount of time, that should've set off bells and sirens. 

"Recapitalization" is often a buzzword for bankruptcy, and the use of the word "stakeholders" should've been the dead giveaway. 

But the company left the best part to the fine print of the liquidity section in its 10-Q, filed with the Securities and Exchange Commission. Here, RadioShack not only bluntly said that it's thinking about Chapter 11 bankruptcy, but that it is considering Chapter 7 liquidation. 

From the filing: 

"We have experienced losses for the past two years that continued to accelerate into the second quarter of fiscal 2015, primarily attributed to a prolonged downturn in our business. Our ability to generate cash from operations depends in large part on the level of demand for our products and services. We continue to face an uncertain business environment and face a number of fundamental challenges in our mobility business due to consumer interest in handsets available in the market today, aggressive price competition on these products and intense wireless carrier marketing activities. Our retail business also faces the challenge of revamping our product assortment to anticipate and meet our customers' needs and wants to produce profitable operating margins. We believe these challenging market conditions will continue for the third quarter and possibly the balance of the year. 

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