RadioShack Faces Bankruptcy

RadioShack Corporation RSH is rumored to be preparing to file for bankruptcy protection, a sign that the struggling electronics chain was unable to turn its business around.

Despite efforts to follow its peers into the digital age, RadioShack was unable to make a comeback in 2014, and warned in December that bankruptcy could be in its future. According to the Wall Street Journal, investors may see the company file as early as February.

RadioShack tried to re-brand itself as a repair shop through much of 2014, but falling sales for three consecutive years left the company strapped for cash and unable to attract new customers. The electronics chain even splurged on a Super Bowl commercial at last year’s game, but the money spent had little impact on consumers’ image of the store.

The shift in consumer shopping habits from brick and mortar stores to online marketplaces put the final nail in RadioShack’s coffin, as most customers started buying their electronics online. Retailers like Amazon.com Inc. AMZN and eBay Inc. EBAY were able to offer the same items found at RadioShack, often at lower prices.

The same challenge has plagued electronics giant Best Buy Co Inc. BBY, but the chain has remained competitive by adding on services like GeekSquad and home installation help to make its products more appealing.

The company has also offered deep discounts and price matching promises in order to get customers in the door, something its management says is helping to revive sales.