Title: 5 Reasons Why RadioShack Went out of Business
Headings: 5 Reasons Why RadioShack Went out of Business
5 Reasons Why RadioShack Went out of Business
1. High Store Concentration
2. Online Competition
3. Product Concentration
4. Management Problems
5. Financial Missteps

Content: The workers' morale and the company's profits slipped even further. 5. Financial Missteps
Because RadioShack had experienced negative earnings since 2012, the company needed significant capital infusions to stay solvent. In October 2013, RadioShack was able to obtain a $585 million line of credit from GE Capital and the $250 million term loan from Salus. The $250 million term loan came with the condition that RadioShack could not close more than 200 stores per year without Salus' consent. As the RadioShack's cash burn accelerated in 2014, the company attempted to close over a quarter of its stores to stop the cash outflows; however, Salus thwarted the closure efforts due to a lack of confidence that the company's business plan would succeed. This accelerated the bankruptcy filing due to lackluster 2014-2015 holiday season sales and continuing cash burn.