RadioShack (NYSE: RSH) reported its seventh consecutive quarterly loss as sales for the consumer-electronics chain continue to struggle. The retailer's net loss widened to $112.4 million, or $1.11 a share, in the three months through September 30. For the same period last year, the brand reported a loss of $47.1 million, or 47 cents a share. Total sales declined 10 percent to $805 million from $898 million a year ago.
In hopes for a turnaround, RadioShack also announced that it received commitments for $835 million in a new five-year financing deal with GE Capital. The new financing will comprise $585 million in a new asset-based lending facility and a $250 million secured term loan. Reportedly, RadioShack had been looking to refinance existing debt to cut borrowing costs and free up cash for the company's turnaround plan.
Sales declines at RadioShack have been partly attributed to executive departures, strong competition and a lack of upgraded branding to digital savvy consumers. In an effort to pick up speed this holiday season, the Fort-Worth-based retailer is said to be dumping outdated inventory such as GPS devices and laptops and stocking up on popular headphones, trendy health and fitness gadgets and high-demand toys such as remote control cars. RadioShack is also improving in-store displays to boost sales of major brands, including Apple (Nasdaq: AAPL).
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