(Reuters) – Electronics retailer RadioShack is preparing to file for bankruptcy protection by next month, the Wall Street Journal reported citing people familiar with the matter.
Texas-based Radioshack is in talks with a private-equity firm that could buy its assets out of bankruptcy, the Journal reported, citing sources.
The talks may not produce a deal, and RadioShack may opt for other debt-restructuring options that do not include a sale, the Journal said.
RadioShack has reached out to potential lenders that could provide a loan to fund its operations during the bankruptcy case, the Journal added.
RadioShack was not immediately available for comment.
The retailer, which reported a bigger-than-expected third-quarter loss last month, warned in September that a bankruptcy filing was a possibility.
Salus Capital Partners had said it would provide $500 million to RadioShack in a kind of debtor-in-possession loan used by companies to fund operations in bankruptcy, the Wall Street Journal previously reported.
RadioShack’s shares RSH -23.19% have fallen nearly 60 percent since its bankruptcy warning through Tuesday’s close.
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