RadioShack said Monday that it’s negotiating with a major vendor about potential changes to its contract that would help it with its financial-restructuring prospects.
The cash-strapped retailer also said the negotiations with the unnamed major vendor so far haven’t resulted in changes to its contract, but talks are continuing.
The Fort Worth, Texas-based company said its largest creditors are part of the discussions with the major vendor.
RadioShack’s largest vendors include the wireless carriers AT&T, Verizon, Sprint and T-Mobile. Apple, Sony and Samsung are also among its big-name suppliers. RadioShack has a large private-label business for its various batteries and accessories.
Earlier this month, RadioShack said a bankruptcy reorganization is also being considered if it can’t shore up its finances as it tries to turn around the chain of 4,200 stores. Last week, AlixPartners managing director Holly F. Etlin stepped in as interim chief financial officer after John Feray left the company after only seven months. She’s been a financial advisor to RadioShack in recent years.
Here’s the statement it filed this morning with the SEC:
“The Company and certain of its largest creditors have had discussions with a major vendor concerning potential modifications to the commercial relationship that could be beneficial to a financial restructuring of the Company. These discussions did not result in a change to the commercial relationship at this time but are continuing. The Company continues to explore how to optimize its various commercial relationships in light of alternative restructuring scenarios, and may involve lenders, bondholders, shareholders, lease counterparties and other stakeholders in these discussions at any time. There can be no assurances that any such discussions will result in modifications to the Company’s commercial arrangements.”