NEW YORK (TheStreet) -- Shares of electronics retailer RadioShack (RSH) are rising after the company reported that Chief Financial Officer John Feray resigned due to "personal reasons." Additionally, analysts issued notes reacting to last week's news that the struggling retailer may need to file for bankruptcy by saying that Amazon (AMZN) should consider purchasing stores from the company and that Best Buy (BBY) could benefit if RadioShack goes under.
WHAT'S NEW: RadioShack appointed Holly Etlin as interim CFO to replace John Feray, who resigned on September 12, citing personal reasons. Feray had joined RadioShack from Dollar General (DG) just this February, having replaced Etlin, who had been interim CFO from July 2013 until then. On Friday, The Wall Street Journal reported that the company was reviewing a $585M financing package led by Standard General and UBS (UBS) in an attempt to save itself from bankruptcy. People familiar with the matter said that Standard General would arrange $260M and UBS would arrange $325M to replace GE (GE) Capital's loan and ultimately allow the company faster access to cash through the upcoming holiday season.
WHAT'S NOTABLE: On September 11, RadioShack reported second quarter losses that nearly doubled last year's numbers. Q2 revenue was $673.8M, compared to $861.4M for the same period last year. Comparable store sales were down 20% for the quarter, driven by traffic declines and soft performance in the mobility business. The company said that it expects improving sales trends to continue into Q3 due to Apple's (AAPL) handset launch. Still, in its filing related to those quarterly results, RadioShack said that it would need to obtain extra liquidity sources, consolidate its store base, and potentially restructure its debt. The firm said it was looking into evaluating all of its alternatives to restructure existing debt terms to create additional liquidity, but it might need to implement an in-court proceeding under Chapter 11 of the U.S. Bankruptcy code. During the company's conference call, RadioShack CEO Joseph Magnacca said that the company's performance was not a reflection of the "significant progress" it was making on its turnaround efforts. He noted the company was in "advanced" talks regarding recapitalization with creditors.