RadioShack posts big loss, confirms $835 million in financing
Oct 22 (Reuters) - RadioShack Corp posted a much deeper loss than analysts were expecting and confirmed that it has received commitments for $835 million in new debt financing.
The retailer also named Paul Rutenis as its chief merchandising officer and Janet Fox as its senior vice president of global sourcing. Rutenis was most recently senior vice president and general merchandising manager for the home division at J. C. Penney Co Inc. Fox was most recently a senior vice president at Under Armour Inc and also previously worked at J.C. Penney.
RadioShack lost $112.4 million, or $1.11 per share, in the third quarter, compared with a loss of $47.1 million, or 47 cents per share, a year earlier.
Sales fell to $805.4 million from $898 million.
Analysts had expected the electronics chain to lose 35 cents per share on sales of $891.7 million, according to Thomson Reuters I/B/E/S.
RadioShack said it obtained a total of $835 million in financing commitments from a consortium of lenders led by GE Capital, Corporate Finance; CIT Corporate Finance; RBS Citizens, NA; and Salus Capital Partners. Some details about the financing were reported late on Monday by the Wall Street Journal and Reuters.
It also said that it continues to have a strong balance sheet and had total liquidity of $613 million as of Sept. 30.