0
New York Stock Exchange Sends Warning Letter To Radio Shack
By January 23, 2015
Experts expect that The Shack will declare bankruptcy sometime in February, which will free up the chain to close more stores and shrink its excessive retail footprint. Since it costs money to close a store, the company’s creditors currently only allow it to close 200 stores per year. RadioShack has around 4,300 stores right now.
That’s why the chain may not even pay attention to the notice from the NYSE, which arrived because The Shack’s market capitalization (that’s to say, the value of all of its outstanding shares of stock) is under $50 million. It’s now $30 million, to be precise, as the stock’s value has fallen significantly due to the company’s eleven quarters in a year of losing money, and all those news reports that it’s about to declare bankruptcy.
The first warning came in July 2014 when shares first fell under $1, and now the company is worth only about $30 million.
The NYSE has asked The Shack to produce a business plan explaining how it will improve its stock price and not go out of business in the coming weeks.
