Tuesday, 21 February 2017
Last updated 3 days ago
Aug 27 2014 | 7:14am ET
Rescuing struggling retailers is starting to become Standard General’s forte.
In the wake of its deal to save American Apparel, the hedge fund is now in talks to help keep RadioShack out of bankruptcy. Standard General owns a roughly 10% stake in the company, which will likely run out of cash next year.
Standard General is working with RadioShack to come up with a plan to stay out of Chapter 11. Part of that strategy would involve issuing new debt or stock and refinancing a $250 million second-lien term loan. That debt is held by Cerberus Capital Management and Salus Capital Partners.
The potential RadioShack deal comes just a month after Standard General offered a financial lifeline to American Apparel, whose board it now controls. The hedge fund named RadioShack CEO Joe Magnacca as one of its representatives on the board.