Beleaguered RadioShack: Bankruptcy could be imminent

“I may be dating myself but when I was a kid, RadioShack Corporation was the place to be,” New York Shock Exchange writes for Seeking Alpha. “The stores were cool, innovative, and always had the latest gadgets. Fast forward a few decades later and you’ll find an iconic company being squeezed out by the likes of Best Buy, Wal-Mart, and Amazon; RadioShack has been on life support for some time now.”

“For the 13 weeks ended May 3, 2014 the company reported revenue of $737 million, down over 13% from the $848 million reported in the same period a year ago; loss from operations was $334 million,” New York Shock Exchange writes. “The company’s cash on hand was down to $62 million at the end of the quarter due to cash burn gone unabated: ‘For the 13 weeks ended May 3, 2014, RadioShack suffered cash out flows from operations of $38 million. Cash out flows from investing was $10 million. The company’s total cash on hand declined from $110 million to $62 million at the end of the period. Based on its current cash burn from operations of $38 million, RadioShack could potentially run out of cash over the next few quarters.'”

New York Shock Exchange writes, “Yesterday Wedbush Securities cut its price target to $0 per share, citing imminent bankruptcy.”

Read more in the full article here.

MacDailyNews Take: RadioShack lost its way a long time ago and, at this late date, going back to its roots (electronics parts, cables, etc.) is likely too little, too late. Like most people, obviously, we haven’t been in one in years, but from what we can remember, it seemed like a mishmash of bad TVs, radio-controlled cars, cellphones, and an ever-dwindling area of actual electronic parts, boards, solder, etc. Retailers fail when the consumer doesn’t have a clear idea of what a retailer carries and is trying to sell. What exactly is RadioShack’s raison d’être in late mid-late 2014?

One thing’s for sure: When RadioShack goes tits up, Woz will likely shed a few sentimental tears.

Related articles:
Apple’s retail market share grows as RadioShack and Best Buy shrink – March 7, 2014
Beleaguered RadioShack to close up to 1,100 U.S. stores – March 4, 2014
RadioShack cuts $20 off AT&T iPhone 5 models through December 15th – December 5, 2012
Sprint iPhone 4S to hit RadioShack this weekend, 16GB only – November 19, 2011
RadioShack to sell Apple iPhone 3G and 3GS – November 7, 2009
RadioShack CEO: We’re selling all the Apple iPods we can get – October 21, 2005

43 Comments

  1. That’s a shame. They were a good company. Every now and then I’d use them for certain stuff that wasn’t easy to find elsewhere. Too bad they didn’t figure out how to fit in with the new paradigm in technology. I wish they’d figured it out, but they didn’t. It’s a shame.

    1. WERE a good company.

      They lost it when electronic parts became special order only (at a time you can order more for less at Digi-Key or a host of other online retailers), and then decided to ONLY carry second rate phones and second rate computers.

      They have become little more than a phone-selling kiosk without the kiosk.

      RIP Radio Shack.

      By the way, my first computer could have been a Trash 80. I went into the closest store and put down my deposit. When the first one was available to see at a distant store, I went to check it out. Then went to the original store and for my deposit back. Used to buy a Mac in 1984.

      1. I purchased a first generation TRS-80 computer in the 70s. It cost $3600 with the custom desk, external 5 1/2″ floppies, 32k of RAM, an uppercase B&W display, and an audio cassette drive to load the operating system into RAM whenever you started it up, which took around 20 minutes. Fluorescent lights would corrupt the RAM in a couple of hours, so you got to start over again. Mine also came with BASIC so you could program your own applications, since virtually nothing was available to buy initially.

        I had a blast with it for about six months, then put it under a sheet and got on with my life. That experience sold me on the Macintosh the first time I saw it in 1984, since I had discovered I wanted to use the computer, not just play with it.

        I gave the TRS-80 to a local civic theatre in 1999 to use as a prop in their productions. It was actually kind of a neat toy, but I discovered I didn’t have the patience to become a programmer.

  2. While radio shack is clearly on an unrecoverable nose dive, I will say that going into one lately was refreshing: they can repair a cracked smartphone screen, have truly cool remote control toys, and home automation stuff I cannot find at Home Depot or Best Buy. RIP RadioShack

  3. Google put the final knife in RadioShack’s back with its shoddy android products that couldn’t be sold for anything less than microscopic margins. It might work for a street market trader but when you have rent to pay on Main Street then it’s not so much of a viable business model.

  4. I was in one the other day in a rather quiet small mall in Newhall, CA to buy a car charger for the iPhone. There was no one else in the shop. I asked the guy if he was having a nice quiet day. One other guy popped in and then we both were gone leaving the kid in charge to his quiet day again. I pondered how they could keep this up so this headline is not unexpected.

    I love “real” electronic stores and they are getting fewer and far between but Radio Shack caters neither to the pro nor the consumer very well. Still they were useful for while there, now a casualty of time and moving technology.

  5. Yeah. Same here. RadioShack was a magic place when I was a kid. First electronics kits. Where I got everything for my sick little projects. Thanks to RadioShack, people living in my house were ahead of the curve on living under unwanted surveillance.

    “ARE YOU IN THAT TREE LISTENING TO MY CALL???”

    “NO! But if Grandma is coming over can she bring D batteries?”

    Good times.

  6. i stopped going to the shack for one reason: Prices

    In the past whenever i went there to buy a cable, i was completely turned off by their atrocious prices for these cheap looking cables that were significantly cheaper either at walmart or monoprice.com

    I won’t miss them at all.

  7. to survive, i think they should close every single store and go exclusively online. they still have big competition from amazon, walmart, mono price etc, but with name recognition they could have lots of success just selling their products online out of numbers warehouses around country

    1. or to grow, they need to be in the maker movement and have facilities where they supply parts, machines to make parts and the smarts to put them all together.

      That was the quintessential “radio shack” where we high school students way back would get together to hack up radio receivers, transmitters, VTVMs and other things from Heathkit and then things we created ourselves as we read Popular Mechanics and other magazines.

      I suspect it is just too late for Radio Shack. You can’t do anything with the crummy items I’ve seen in their stores lately. Sad.

  8. They deserve to go bankrupt. Their store employees are idiots. I called a Radio Shack recently to find out if they had power over ethernet injectors. They’re response was “what’s that?” I ended up going someplace else staffed by people who knew what that was. It reminds me of their old advertising slogan… “You’ve got questions? We’ve got answers”. It should now be “You’ve got questions? We’ve got blank stares”.

    1. in their defense, i’ve gotten plenty of blank stares from apple store employees. they purposely hire people with no knowledge so the only thing they can tell the customer is what they train them to say

      1. I’ve seen that at Apple stores myself, and what’s really scary is that some of them have been Mac Geniuses! I once upgraded someone’s RAM right there at the Genius Bar because the MGs turned their nose up at the Crucial RAM that the customer brought in to have installed. I just happened to have the right size screw driver in my laptop bag, so I did the install as they stared daggers at me.

          1. I used to work as a Mac Genius, and I think it’s ridiculous that Apple has this dumb ass policy of not installing third party RAM. Crucial is the consumer brand name of Micron. I’ve seen a lot of Micron RAM in Apple systems, so it’s not like this woman brought in some skank “value RAM”.

            1. I used to work in an Apple store about 8 years ago. Back then it was real enthusiasts of the Mac. Just due to the sheer number of employees now, they’re just employees. It’s like anywhere else – some are great, some aren’t and many are just there to work as if it were anywhere else.

    2. In their defense, not everyone knows what a ethernet injector is. DC power over an ethernet cable to a breakout box.

      I would have explained what it was and teach that associate something new.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.