RadioShack has been barely hanging on for years, but this time it really looks as if the end is nigh. On Thursday, the company announced quarterly losses of $137 million, which was twice what analysts had predicted, and which came after a Wall Street brokerage firm predicted this week that the company would soon file for bankruptcy.
The bad news comes despite RadioShack’s attempt to rebrand itself as a destination for smartphone shopping, with revamped store designs. The moves failed to impress consumers or investors, leading analyst Michael Pachter of Wedbush Securities to predict that shareholders would get wiped out.
“We believe a bankruptcy reorganization is imminent…Expect dismal results to continue,” wrote Pachter in an investor note this week reported by the Wall Street Journal.
RadioShack earlier this year announced it intended to close more than a quarter of its 4,000 stores, but that plan has been largely blocked by creditors. The company’s share price enjoyed a small rally before Labor Day, trading as high as $1.77, but they fell below a dollar this week.
The first [company]RadioShack[/company] store opened in Boston in 1921, and the company later became a popular source for speakers, PCs and antennas.