RadioShack (NYSE:RSH) announced it has replaced its interim CFO with another temporary executive as the retailer tries to turnaround its flailing business. The company has retained the services of FTI Consulting for advisory and management services as it seeks bankruptcy protection and to possibly liquidate, reported The Wall Street Journal.
Carlin Adrianopoli, 39, a senior managing director in the restructuring process at FTI Consulting, will fill the CFO role for now, reported Bloomberg. He is replacing Holly Etlin, managing director at advisory firm AlixPartners, who has served in the temporary role since September.
RadioShack has reported 11 straight quarterly losses and is trying to scrape up cash.
Earlier this month, the retailer received notice from Salus Capital Partners, a unit of Harbinger Group Inc., claiming it is in breach of covenants on a $250 million term loan provided by Salus and Cerberus Business Finance. But RadioShack shot back, saying these claims were "wrong and self-serving." RadioShack is now contesting the claims. Salus Capital is attempting to get a bigger piece of the retailer's debt in exchange for agreeing to back the company's store-closing plan.
According to the company's Dec. 12 quarterly filing, improving cash flow and refinancing existing debt is imperative if the retailer wants to survive.
RadioShack has registered to sell rights for as much as $120 million in convertible preferred shares, in an attempt to get fresh funds.
The offering is part of a package that hedge fund Standard General LP formulated in October.
-See this Bloomberg article
-See this Wall Street Journal article
RadioShack seeks funding; makes turnaround effort
RadioShack defends its balance sheet, discourages implications that it's for sale
Staples and RadioShack pull Amazon lockers from stores
Survey: Sears, RadioShack, Dollar General and Dillard's are the worst retail employers
Even RadioShack can't make money on mobile phones now