RadioShack Corp. (RSH) shares tumbled 17% in midday trading Monday, after Bloomberg News reported that the struggling electronics retailer is preparing to shut down the chain in a bankruptcy deal that would see half the stores taken over by Sprint Corp (S) and close the rest. The locations sold to Sprint would operate under the wireless carrier’s name, meaning RadioShack would cease to exist as a stand-alone retailer, Bloomberg said.
Still the negotiations could break down without a deal being reached, says the publication, noting that another bidder could yet emerge to buy RadioShack and keep the almost-century-old chain operating.
The Wall Street Journal reported on Sunday that hedge fund Standard General LP, the company’s largest investor, is in talks to serve as the lead bidder at a bankruptcy auction.
Several news sources said RadioShack, which has reported losses in each of the last 11 quarters, is considering a bankruptcy filing as soon as today.
RSH shares recently lost $0.05 to $0.23. The stock is down more than 88% year-over-year and has lost roughly 25% year-to-date. In the past 52 weeks, shares of Fort Worth, Texas-based company have traded between a low of $0.22 and a high of $2.79.
RadioShack Corp. has a total market cap of $23.36M.