With RadioShack Bankruptcy Imminent, a Buyer Steps Forward
Hedge fund Standard General LP is in talks to serve as the lead bidder at a bankruptcy auction for RadioShack Corp, the struggling consumer electronics retailer, the Wall Street Journal reported, citing people familiar with the matter.
RadioShack is aiming to file for bankruptcy protection as early as Monday, according to the Journal.
The company was still discussing an agreement with Standard General to serve as its so-called "stalking horse" at a court-supervised auction for RadioShack's assets, the Journal reported.
RadioShack is running out of cash after reporting losses during each of the last 11 quarters, the newspaper reported. Standard General became RadioShack's largest shareholder last year and led a financing that helped the ailing company get through the holiday retail season, according to the Journal.
One possibility the companies are discussing is for Standard General to buy a RadioShack that has fewer stores, the newspaper reported.
(Reporting by Suzanne Barlyn; Editing by Eric Walsh)