RadioShack may file Chapter 11 bankruptcy, the retailer announced Thursday, Sept. 11.
Yesterday’s announcement came after company officials met with shareholders and bankers. Spokesmen from the electronics retailer says the company will attempt to climb out of the red in coming months. If it can’t, the Fort Worth, Texas corporation will likely seek bankruptcy protection.
The company announced earlier this year it was closing nearly 20 percent of its 5,200 U.S. stores, which led to a credit downgrade. In June, RadioShack announced it had enough cash to survive for 12 months. It was later reported the company could be shuttered by the end of the 2014 holidays if it didn’t restructure.
RadioShack CEO Joseph Magnacca, its third in four years, said in an Associated Press report the company is reviewing a number of cost-cutting measures, some of which must be approved by its lenders.