Boston, MA 06/18/2014 (wallstreetpr) – The things are not getting better, rather they are worsening for RadioShack Corporation (NYSE:RSH) as the retailer of consumer electronics tested 52 week low on Tuesday at $1.10 per share. The company has already lost over 68% of its value over the last one year. While the conventional offline stores like Best Buy are already battling with the issues of weakness in the electronics market, RadioShack is far ahead with its mounting troubles.
Hit By Broader Industry Weakness
Recently the retailer posted its quarterly results, which echoed the company’s incompetence to stand against the latest entrants in the space. RadioShack Corporation (NYSE:RSH) is all close to failure against larger retailers like CONN’S, Inc. (NASDAQ:CONN). At the same time, the element of uniqueness is also absent from the retailer’s offerings as it sells products that are mostly available at other stores. RadioShack’s inability to address the current competition is now restricted to it, but is a problem for other renowned retailers like Best Buy. However, the scale of operations of these companies give them an edge over small players like RadioShack.
Close To Bankruptcy
Despite the bad numbers that the company has cut out in its recent quarter and a gloomy picture ahead, the management of RadioShack has decided not to give up. The company is having faith that they will get their business from Verizon Communications Inc. (NYSE:VZ) soon, however, agree that a lot has to be done in order to create awareness among consumers for the latter’s business. On that note, the company puts forward its reasonable opinion that the business will remain weak for the entire 2014.
More so, the company also outlined a series of cost cutting measures, including closure of 200 stores, in order to remain afloat. However, so far, the company has been subject to analyst downgrades, with the recent firm, B.Riley & Co. slashing its price target to $0. The analyst at the research firm projects that RadioShack Corporation (NYSE:RSH) might soon have to file for bankruptcy, if it continues to burn up the cash at its existing pace.