NYSE suspends trading of RadioShack

Written By limadu on Selasa, 03 Februari 2015 | 12.08

RadioShack does not have a high enough valuation to be listed on the exchange, which requires companies to keep a market cap of at least $50 million.

The retailer has also been low on cash. Struggling to compete with online stores like Amazon, losses mounted and RadioShack (RSH) burned through all but $43 million of its cash by last November. Even counting its credit lines, the company only had $63 million available heading into the Christmas shopping season.

Related: 94 years of hits and misses at RadioShack

Although it once boasted about its vast retail network, saying that 90% of the U.S. population lived or worked within a few minutes of a RadioShack location, the company's 5,000 stores have been weighing it down.

Last March, the company announced a plan to close about 1,100 stores, but it's an expensive undertaking due to the cost of severance, liquidating merchandise and paying penalties to get out of leases.

It was only able to close 175 stores through the end of October. By year's end it was battling with its lenders to get the green light to close more.

RadioShack can review and appeal the decision by the NYSE to suspend trading. The company declined to comment.

Related: Time is running out for RadioShack

CNNMoney (New York) February 2, 2015: 11:35 PM ET


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