Is Bankruptcy Next For RadioShack?
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FORT WORTH (CBS 11 NEWS) - Financial analyst Jim LaCamp sees Radio Shack's woes in the massive Sundance Square store across the street from his office.
"I don't see a lot of people and this is supposed to be a flagship store," Lacamp said. "And it's anecdotal evidence, I'm not here all the time. But, I don't see a lot of people there even though I see a lot of people in Sundance Square."
The company is losing hundreds of millions of dollars every quarter despite closing stores across the country. Reports the company will file for bankruptcy in February sent Radio Shack stock prices plummeting Thursday.
One of the problems? Branding.
"You ask people, 'What is RadioShack and what do you do there?' And it's little niche parts."
Even people who walk past the store daily aren't sure what they'd buy there.
"If I wanted maybe like a helicopter, like a remote control one," said Steve Coyne, who works in Sundance Square. "But really Radio Shack is not my first thought. I would probably go to Best Buy or something if I wanted electronics."
"You know, they had the Super Bowl ad that everybody was excited about but are people going in the stores? Apparently not." Lacamp said.
If Radio Shack files for bankruptcy it might survive as a leaner company -- but business history isn't in it's favor.
"Think about Circuit City," Lacamp said. "What happened to them? Think about Computer Associates. What happened to them? Crazy Eddie. What happened to them? And so you start looking at the history of consumer electronics -- the industry --it's not good!"
Radio Shack released a statement declining comment except to say they have not confirmed the bankruptcy story.
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