By: Joe Wathen
RadioShack, the once famous electronics store has had some financial problems as of late. By financial problems, I mean the store hasn’t turned a profit since 2011. But through financial advisors and management options, they hope to rebound.
RadioShack has been in operation for 94 years. Its rise to power is attributed to the mass adoption of the radio and other electronics. It started selling mobile phones in 1984 as well as Walkman’s, CD players, and beepers. And in 1962 the company was acquired by Tandy Corporation who was looking to expand and diversify from leather-based products. In the year 2000 their ticker symbol was changed to RSH. But as with all great legacy’s, it was only a matter time before technology finally caught up to them and made their technology obsolete. And just like their former competition Circuit City who folded in 2009, RadioShack might end up doing the same thing.
In hopes of rebounding from these terrible times, they turned to a Mr. Magnacca. Mr. Magnacca is the former CEO of Duane Reade, which he helped rebuild before it was sold to Walgreens. But the financial troubles proved too much for Mr. Magnacca. But they do have alternate solutions. Solutions such as legal advisor Jones Day, investment bank Lazard Freres, and financial advisors The MAEVA Group and FTI.
Personally, if I was the management of RadioShack I would have gone out of business on my own terms, instead of being forced out of business by the growing popularity of newer age technology.