Retail

RadioShack Mired in Talks with Lenders over Closings

April 17, 2014

RadioShack Corp. is mired in negotiations with its lenders over plans to close as many as 1,100 stores, complicating the struggling consumer-electronics retailer's turnaround efforts, the Wall Street Journal reported today. The delay also is intensifying tensions with some lenders, who were surprised by the store-closing plan when RadioShack publicly disclosed it on March 4. The company, which operates about 4,300 stores in the U.S., said at the time that the plan still needed permission from its lenders, adding that its credit agreements allowed it to close only about 200 stores without the approval of lead lenders Salus Capital Partners and GE Capital, a unit of General Electric Co. The company also said in March that it planned to spend the next month hammering out an agreement with its lenders before choosing a liquidator to wind down the stores.

Coldwater Creek Wins Approval of Bankruptcy Loan

April 15, 2014

Coldwater Creek Inc. won court approval to borrow $42 million to finance operations while the women’s clothing retailer prepares for going-out-of-business sales at its more than 370 stores, Bloomberg News reported yesterday. The loan from current lender Wells Fargo & Co. will allow the company to maximize returns for creditors, Coldwater said in court papers. Coldwater, founded as a catalog business 30 years ago, said last week it intends to start liquidating inventory just before the May 11 Mother’s Day holiday. Bankruptcy Judge Brendan Shannon at a hearing yesterday granted the company interim approval to borrow as much as $42 million of a $75 million financing package.