CHICAGO (AP) — In a story May 15 about a Fitch downgrade of RadioShack Corp., The Associated Press reported erroneously the location of RadioShack's headquarters. The company is based in Fort Worth, Texas.
A corrected version of the story is below:
Fitch cuts RadioShack to low end of junk territory
Fitch pushes RadioShack deeper into junk territory after creditors block store closings
CHICAGO (AP) — Fitch cut its rating on RadioShack on concerns that the retailer may not have sufficient cash flow to make it through the year.
RadioShack announced plans in March to close as many as 1,100 stores after slower sales were causing losses to pile up. But the retailer failed to get the approval from lenders necessary for the plan and said last week that it will close fewer stores and find other ways to cut costs.
Fitch Ratings said Thursday that without the massive inventory liquidation, the company's cash flow and profit could suffer. The rating agency said it is increasingly concerned about RadioShack's ability to operate beyond this year due to its cash burn.
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