RadioShack in 'advanced discussions' to raise capital

Pedestrians walk past a RadioShack store in San Francisco.
David Paul Morris | Bloomberg | Getty Images

Troubled electronics retailer RadioShack reported its 10th straight quarterly loss and said it was in advanced talks with a number of parties to raise capital.

Shares of the retailer moved higher in early trading following the announcement. (Click here for the latest quote.)

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The company's net loss widened to $137.4 million, or $1.35 per share, in the second quarter ended Aug. 2 from $52.2 million, or 51 cents per share, a year earlier.

Remember RadioShack's heyday?
Remember RadioShack's heyday?

Revenue fell nearly 22 percent to $673.8 million, while same-store sales declined 20 percent.

The company ended the quarter with total liquidity of $182.5 million, including $30.5 million in cash and cash equivalents.

"We know we need additional financial flexibility to move ahead with our goals," CEO Joe Magnacca in a call with analysts following the announcement.

Magnacca said the company is also working with landlords, lenders and bondholders to examine potential cost savings that offer a long-term solution without diluting the customer experience.

Read MoreRadioShackis running out of cash: Moody's

He said cost cutting may include store-based consolidation, though "there is no predetermined outcome to this work."

Earlier this year, RadioShack had announced plans to close 1,100 stores to cut back on expenses. But the company's lenders did not agree to the terms, and instead agreed the business could shutter 200 stores a year for the next three years.

Wedbush analyst Michael Pachter, who earlier this week lowered his price target on RadioShack to $0, told CNBC on Wednesday that the retailer's footprint should be trimmed to half the size. The retailer currently runs more than 4,000 stores.

Magnacca added that additional savings have been made through changes to the company's supply chain and from lowered costs in the corporate office.

He said the company has made "significant progress" in its inventory management, and that the company is a "far cry" from where it was before its overhaul began.

Analysts were not offered an opportunity to ask questions on the call.

By CNBC and Reuters