Struggling electronics retailer RadioShack may file for bankruptcy as early as next month, according to The Wall Street Journal.
RadioShack had warned in November that it may need to file for Chapter 11 as it is strapped for cash.
Citing people familiar with the matter, the Journal reports RadioShack is discussing a deal with a private-equity firm to "buy its assets out of bankruptcy." If that doesn't work, the company could go to bankruptcy court, instead. Potential lenders who could fund operations during the bankruptcy proceedings are also in the mix, the Journal states, adding that much is in flux.
In November, the company reported it only had enough money to pay for operations in the very near term. The Fort Worth, Texas company has been struggling to keep up with online retailers for some time. The 94-year-old chain has been combatting the competition by revamping its offerings, closing stores, cutting costs and changing management. Despite the attempt to claw its way back up, the retailer has posted losses for the past 11 quarters.
Earlier this week, Marketwatch reported that Salus Capital offered RadioShack a $500 million loan to fund operations during bankruptcy. The offer was unsolicited and expires Thursday.