RadioShack May File For Bankruptcy, Shares Down 30% #PreMarket

RadioShack Corporation RSH is preparing to file for bankruptcy as early as next month, according to reports. Thursday is the deadline for the company to come up with $100 million in combined cash and credit in order to continue operations.

RadioShack has posted losses in each of the previous 11 quarters, resulting in it having just $62.6 million in cash and credit available heading into the Christmas shopping season. That didn't leave RadioShack with enough cash to move forward with its plan to close 1,100 of its 5,000 stores.

A private equity firm is reportedly looking at purchasing RadioShack’s assets out of bankruptcy, according to The Wall Street Journal.

Over the past year, RadioShack’s price declined 81 percent to close Wednesday at $0.41.

In pre-market activity, shares last traded at $0.27, down 34 percent.