Update 5:45 pm ET: A press release from the New York Stock Exchange on Monday night said the exchange is taking action to delist the common stock of RadioShack.
The release says the NYSE will suspend trading immediately in shares of RadioShack, and says, “The decision was reached in view of the fact that the Company does not intend to submit a business plan,” to address its noncompliance with the NYSE’s continued listing standards.
RadioShack might have a deal.
According to a report from Bloomberg, RadioShack and Sprint are in talks on a deal that would see RadioShack sell half its stores to Sprint and close down the other half of its retail outlets.
Radioshack is reportedly discussing liquidation as part of this deal.
In afternoon trade on Monday following the report, shares of RadioShack were down about 18%, to $US0.22 per share, little changed from where they were ahead of this report.
Sprint shares were little changed following the report.
The half of RadioShack’s stores sold to Sprint would operate under Sprint’s name, though a deal has been discussed for co-branding the stores, according to Bloomberg, which cites two people familiar with the matter.
This latest report comes as RadioShack’s sales have struggled over the last several years while the retailer’s stock price has fallen more than 90% over the last year.
A report from The Wall Street Journal last month said that RadioShack was looking at prepping for a bankruptcy filing this month and added that RadioShack has reached out to potential lenders who could provide a loan to the company.
In its most recent quarterly-earnings report, RadioShack said sales declined 16.1% compared to the prior year while the company’s operating loss totaled $US114.1 million and a loss from continuing operations of $US161.1 million.
RadioShack CEO Joseph Magnacca said in that announcement that the company had, “begun a detailed set of cost reduction initiatives designed to enhance earnings by over $US400 million annually, encompassing a range of operating cost reductions related to headquarters, field, stores, and store support to improve operational efficiency and right-size our business, as well as the benefit of targeted store closures.”