RadioShack says its balance sheet remains strong, shares rise
July 12 (Reuters) - RadioShack Corp said on Friday that its balance sheet continues to be strong, with total liquidity of $820 million at the end of the first quarter, a day after a trade publication reported that the electronics retailer was considering hiring a financial adviser.
On Thursday Debtwire, citing unidentified sources, said that RadioShack would entertain pitches from financial advisers in the coming weeks as it faces looming debt maturities, escalating cash burn and bloated inventories.
"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. That has been the sole focus of these discussions," the company said, repeating comments its spokesman gave on Thursday.
RadioShack shares rose to $2.70 in premarket trading after closing at $2.63 on Thursday afternoon. The shares fell as low as $2.19 on Thursday after the Debtwire report.
(Reporting by Jessica Wohl in Chicago; Editing by Gerald E. McCormick)