RadioShack, struggling to stay afloat amid continuing losses and declining cash, said Tuesday that it has replaced its interim chief financial officer with another temporary executive.
The Fort Worth-based company said in a regulatory filing that Carlin Adrianopoli was appointed interim chief financial officer as part of a new agreement with FTI Consulting for advisory services. Adrianopoli, 39, a senior managing director with FTI’s corporate finance and restructuring service, will succeed Holly Etlin, managing director at the advisory firm AlixPartners, who took over as interim CFO in September after the resignation of John Feray.
Adrianopoli and Etlin each have experience with distressed companies.
Last week, the company reported another big quarterly loss and warned again that it may have to seek bankruptcy protection.
“If we do not improve our cash flow from operations and refinance our existing debt, we may not have enough cash and working capital to continue to fund our operations beyond the near term, which raises substantial doubt about our ability to continue as a going concern,” the company said in a filing Friday.
On Wall Street, RadioShack shares (ticker: RSH) fell 5 more cents to close at 34 cents a share after falling 10 cents, or 21 percent, on Monday.
Last week, RadioShack said it had launched a new cost-cutting campaign after a dreary third-quarter earnings report. The company hopes to save $400 million a year by changing store hours and staffing, altering overtime practices and cutting its field manager staff.
The company is fighting with Salus Capital Partners, a major lender that claimed that the company had violated the terms on a $250 million loan.
RadioShack first warned in September that it might have to seek Chapter 11 bankruptcy protection but later negotiated a refinancing deal led by Standard General, a New York hedge fund. But last week CEO Joseph Magnacca said there’s no assurance the company can put a long-term solution in place to stay afloat.
A panel of credit-default swaps dealers and investors ruled last week that the more than $25 billion of contracts tied to RadioShack’s debt don’t need to be settled because of the Salus claims.
RadioShack, meanwhile, has registered to sell rights for up to $120 million in convertible preferred shares, aiming to generate fresh funds. RadioShack had $43.3 million in cash and equivalents at the end of last quarter, part of $62.6 million in total liquidity. That’s down from cash of $316.4 million a year earlier.
In late October, the company hired former Treasury Department adviser Harry Wilson to help with its turnaround efforts.
This report includes material from The Associated Press and Bloomberg News.