Troubled electronics retail chain RadioShack is racing against the clock as it weighs its options, including a refinancing or a bankruptcy, TheStreet.com reported yesterday. It is burning through cash rapidly as it is unable to close money-losing locations. RadioShack planned to close up to 1,100 stores earlier this year, which was later blocked. Holding up the plan is Salus, which holds a $250 million second-lien loan. There is a covenant on that loan that requires RadioShack to get the lender's approval if it is to close more than 200 stores, but closing those stores would also mean a reduction in inventory. RadioShack hopes to get help from hedge fund Standard General, which might help with arranging financing that could not only buy RadioShack some extra time, but also give it flexibility in closing stores.
