A RadioShack (NYSE:RSH) lender, 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.
Salus Capital is seeking to buy as much as $484 million of the $585 million in loans that are held by Standard General, reported Bloomberg. Standard General just purchased the obligations earlier this month to help the retailer stave off bankruptcy.
Looking for cash before the holiday season, RadioShack was hoping to implement a turnaround plan that included closing 1,100 underperforming stores. However, that plan was changed when creditors did not agree to the terms.
People close to the source have said that Salus, which already owns part of a $250 million second-lien loan for the retailer, will need to agree to the store closings in order to consider getting RadioShack and Standard General's buy in.
Earlier this week, RadioShack announced an expansion of its Fix It Here program a same-day mobile repair service, rolling out to 700 nationwide stores by 2015.
RadioShack is still rolling out new programs and formats, even in the wake of 10 consecutive quarterly net losses, which portent a filing for Chapter 11 bankruptcy, a potential sale, or a third-party investment aimed at alleviating the company's ills. And just last month, CFO John Feray resigned from the company after less than a year.
-See this Bloomberg article
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