RadioShack hires advisory firm
Dec. 16, 2014
NEW YORK (AP) — RadioShack is bringing in FTI Consulting as an adviser in the midst of another round of cost cuts as the troubled electronics retailer warned again last week that it may have to seek bankruptcy protection.
The company said in a regulatory filing on Tuesday that Carlin Adrianopoli, a senior managing director with FTI's corporate finance and restructuring service, will take over as interim chief financial officer at RadioShack. Holly Etlin, who became interim CFO in September, will no longer serve in that position.
The company hired former Treasury Department adviser Harry Wilson to help with its turnaround efforts in late October.
Last week, RadioShack Corp. posted wider third-quarter losses and said it would boost earnings by changing store hours and staffing, altering overtime practices and cutting its field manager staff. A trade group also ruled that RadioShack has not failed to make debt payments, despite a lender accusing the chain of violating terms on a $250 million loan.
RadioShack warned in September that it may have to seek Chapter 11 bankruptcy protection, and last week CEO Joseph Magnacca reiterated that stance, saying that there's no assurance the Fort Worth, Texas-based company can put into place a long-term solution to stay afloat.
Shares of RadioShack fell by a penny, or more than 3 percent, to 38 cents in morning trading.