FORT WORTH, Texas — RadioShack released a statement in which it contends its balance sheet remains strong, with total liquidity of $820 million at the end of the first quarter.
The retailer released the statement a day after reports said it was considering hiring a financial adviser as a result of debt maturities, bloated inventories and slumping sales.
“Like many companies, we have discussions with investment banks from time to time to help us evaluate ways to further strengthen our balance sheet and manage it efficiently,” RadioShack stated. “That has been the sole focus of these discussions. As we noted on our last earnings call, we are focused on executing our turnaround and serving our customers.”
In April, the retailer reported a wider first-quarter loss, its fifth consecutive quarterly loss, on weaker sales. New CEO Joseph Magnacca is working to turn the ailing company around and update its image, which includes positioning itself in college bookstores, offering products that appeal to younger consumers and revamping its image with a new store concept.