RadioShack plans to entertain pitches for a financial advisor in the coming weeks, said two sources close to the matter and five advisory sources. Shops with capital markets capabilities and marquee restructuring practices are among the firms already invited to participate in the process, three of the sources specified.
The move to hire a banker to explore a balance sheet fix comes as the struggling electronics retailer faces a string of maturities, escalating cash burn and bloated inventory levels, the sources said. RadioShack first engaged AlixPartners for operational help over a year ago, as previously reported by Debtwire.
A company spokesperson declined to comment on the current search for an FA but did confirm that AlixPartners assists the retailer with inventory and distribution optimization. An AlixPartners representative declined comment on the engagement.
RadioShack has recently done a few high-profile partnerships and stocking many maker-related products – this a story to watch if you’re a maker currently selling kits or working with RadioShack.
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I used to love going to Radio Shack and have been excited to see Arduino and similar kits stocked there. I’ve even bought a couple in spite of knowing where to find them for less.
Unfortunately, nobody has reexamined the components they stock. At least not at our local store here in New Hampshire. Looking for a 5V relay for that Arduino project? No luck. Want some nice terminal blocks to finish off the enclosure for that project? Sorry. Even the enclosure selection is highly limited compared to what they should be offering. A retail space is especially well-suited to tailor to such last-minute project needs.
Alas, nobody at Radio Shack seems to be thinking deeply along these lines. They desperately need a maker champion with the power to redesign that whole section of the store.
And, please, stop asking me about my cell phone plan. I know when my contract is up and I don’t want to be badgered about that EVERY time I cash out.