Radio Shack gets a new leash on life.

[TheForce]

Announced today that Standard General has assumed a 9.8% stake in Radio Shack and has assumed it debt to keep the company out of bankruptcy. The stock jumped 40% mid day and is settling in at a 25% gain end of day on the news. Standard General's Soohyung Kim said they would not seek direct management control until June 12th, but the current move will enable Radio Shack to better equip for the Holiday season.

I bought a few hundred shares of this ( RSH ) a couple days ago on the belief that the company was ripe for a takeover.

Walgreen's success story, Joseph Magnacca was hired over a year and a half ago to turn the company around but has failed to do so.

 

[mdonnelly]

"Buy on the rumor, sell on the news."

 

[FTA4PA]

Here's a Wall Street Journal article about it: http://online.wsj.com/articles/standard-general-in-talks-to-ease-radioshack-cash-crunch-1411744279 It appears some involved with the company aren't happy with the Standard General deal. Even with that cash injection, it's gonna take some major changes to keep them viable.

 

[rjruby]

Here's a Wall Street Journal article about it: http://online.wsj.com/articles/standard-general-in-talks-to-ease-radioshack-cash-crunch-1411744279 It appears some involved with the company aren't happy with the Standard General deal. Even with that cash injection, it's gonna take some major changes to keep them viable.

At this point I am not sure what, if any, "major changes" could be done to help them survive.

 

[navychop]

Yep. A new "leash" as well as new lease. Nice double meaning.

 

[KE4EST]

At this point I am not sure what, if any, "major changes" could be done to help them survive.

Go back to fully catering to the hobbyist and stop trying to be a cell phone kiosk, would be a good start.

Posted From My HTC One

 

[TheKrell]

I thought cell phone sales were what kept them alive for this long! I sure wish Charlie had put cell phones into BB stores, rather than (finishing the job of) running stores into the ground.

 

[TheForce]

Charlie never intended to keep the Blockbuster stores open once he realized you can't take a min wage DVD rental clerk and let them to their own resources to sell a black box with a Kangaroo mascot. None of them understood what it was all about nor how to sell it. Easier for them to ring up money losing DVD rentals.

I was hoping Amazon might buy them out but another rumor is Alibaba. Now they could become a B&M extension of the online business.

 

[Claude Greiner]

Charlie never intended to keep the Blockbuster stores open once he realized you can't take a min wage DVD rental clerk and let them to their own resources to sell a black box with a Kangaroo mascot. None of them understood what it was all about nor how to sell it. Easier for them to ring up money losing DVD rentals.

I was hoping Amazon might buy them out but another rumor is Alibaba. Now they could become a B&M extension of the online business.

The blockbuster stores could have had the same potential to be like the xfinity stores. A nice place where you could service your existing dish network account and establish new service