Radio Shack looking for a buyer?
Sources tell the New York Post that the company is pitching itself to investment firms, but could also be looking to partner with Best Buy.
We could be close to witnessing the end of yet another consumer electronics chain.
According to what sources have told the New York Post, Radio Shack is "exploring strategic alternatives," or shopping itself around. It's very early in the process, and the retailer is still mulling its options.
Investment bankers have been looking to gauge the interest of private-equity firms in buying out the Texas-based chain, but merging with Best Buy is also an idea being tossed around, at least by the bankers involved, according to the Post.
A Radio Shack representative said Friday the company does not comment on rumors as a matter of policy.
Radio Shack is also sitting on $900 million in cash. That means the company can buy back a lot of its outstanding shares, or even buy another company itself. So while Radio Shack isn't struggling to pay its creditors the way Circuit City and were before they closed, it is looking for more opportunities to grow its business beyond simply cutting costs, laying employees off, and building more stores.
It could also follow in the footsteps of both Circuit City and CompUSA, which were sold to online electronics retailers that have attempted to revive the brands by focusing less on brick-and-mortar gadget sales and more on Internet-based sales.
The Post's sources believe that if Radio Shack did put itself on the auction block, it could bring in more than $3 billion.
Updated at 10:20 a.m. PT with comment from Radio Shack.