RadioShack Corporation Death Watch: Vendor Talks Go Nowhere

death watch continued Monday as the company disclosed that talks with creditors and a major vendor on "modifying a commercial relationship" have so far been unproductive. The Fort Worth, Texas retailer, which warned recently of its potential bankruptcy, said discussions with the vendor as well as its largest creditors are nonetheless continuing. The news could prove a precursor to Chapter 11, according to Credit Suisse's David Tawil. “These types of critical vendor talks also prefaced the bankruptcies of Circuit City and Borders, and we know well where those both ended up," Tawil told Dow Jones' MarketWatch Monday, adding that "the situation must be dire." RadioShack said it continues to discuss commercial relationships "in light of alternative restructuring scenarios," but added "there can be no assurances" that talks will prove fruitful. RadioShack's Chief Financial Officer John Feray abruptly resigned last week after just seven months on the job. Holly Felder Etlin was named to the post on an interim basis and is paid for her work as a consultant to RadioShack through AlixPartners LLP. RadioShack traded recently at $0.90 per share, down 0.73 percent.