Standard General In Talks To Serve As Lead Bidder For RadioShack : Report

(RTTNews) - Hedge fund Standard General LP is in talks to serve as the lead bidder at a bankruptcy auction for struggling consumer-electronics retailer RadioShack Corp. (RSH), Wall Street Journal reported citing people familiar with the matter.

The journal said that RadioShack, which is running out of cash after reporting losses in each of the last 11 quarters, is aiming to file for Chapter 11 protection as early as Monday. But as of Sunday afternoon, the company and its advisers were still working out the details of an agreement with Standard General to serve as the so-called stalking horse at a court-supervised auction for RadioShack's assets.

Standard General last year became the company's largest shareholder and led a financing that helped RadioShack get through the holidays.

The paper indicated that one scenario under discussion would have Standard General bid to buy a RadioShack with far fewer stores.