RadioShack considering hiring financial adviser
New York — A Thursday report by Reuters said that RadioShack is considering bringing in a financial advisor to guide the struggling chain toward managing its looming debts and spiraling sales.
According to the report, which cited unidentified sources, RadioShack will hear pitches from financial advisers in the coming weeks, looking for the right fit to deal with $216.4 million in convertible notes coming due August 1, as well as falling sales capped off by a 7.6% drop in the first quarter of 2013.
Last year, RadioShack brought in turnaround firm AlixPartners to provide advice with inventory and distribution.
Best Buy to boost five-year bond issue to $500 million
New York — Bloomberg reported that Best Buy Co. has increased the size of its first bond offering since 2011 from $350 million to $500 million as it prepares to repay an equal amount of notes due July 15.
According to the report, who cited an unidentified source, the five-year securities may yield 5%; proceeds may be used to refinance debt, fund working capital or repurchase stock.
British grocer Morrisons says it will close gap on rivals by 2015
London — Wm Morrison Supermarkets said Thursday it will have the technology systems, online presence and c-store counts by 2015 to significantly close the gap on its closest competitors.
Britain’s No. 4 grocer trails Tesco, Wal-Mart’s Asda and J Sainsbury in annual sales. Its CEO Dalton Philips is optimistic about the chain’s ability to compete. “I’ve only been here three years,” he told Bloomberg. “There was no plan for online, there was no plan for convenience and we had systems, which were 20th century.”
The chain is leveraging a $448 million investment to add “21st-century systems,” he said, including accounting, supply chain management and automated cash-handling solutions.
"We found ourselves five, even 10 years, behind. While we have made real progress in closing the gap, we are not there yet, but we will have done so by 2015," Philips said.
In May, Morrisons acquired online grocer Ocado to enter the home-delivery market.