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RadioShack fighting to survive in San Francisco



RadioShack is planning to open 21 new interactive remodel stores in the San Francisco Bay area.
This is a part of company's commitment of store invigoration and bringing innovative products to the market. As this announcement was made, Moody’s speculated that RadioShack, based in Fort Worth, has sufficient funds to operate for a single year.

Moody’s vice president said the company’s decreasing liquidity and low earnings offers it very little buffer to implement its turnaround strategy over the next few quarters. He stated that the company will find it difficult to stay afloat in the competitive consumer electronics and mobile phone business.
RadioShack fighting to survive in San Francisco.jpg

Moody’s said the one year liquidity and no debt maturities due implies that RadioShack could suffer a total loss of funding by the start of November 2015. RadioShack has received a negative outlook by Moody’s. RadioShack started its remodelling programme and opening of highly experiential concept stores across the US during July 2013. It is set to open a select number of these bright, sleek stores in neighbourhoods across the country. The new stores reflect the company’s aim to revamp its assortment of products, reposition its brand and reinvigorate its stores. As part of the remodelling process, the company plans to close 200 stores annually over the next three years.

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