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RadioShack Gets Bankruptcy Reprieve: Reports

Fort Worth, Texas — RadioShack has reached a financing agreement with hedge fund Standard General LP that prevents the chain from falling into bankruptcy, according to published reports.

Both Bloomberg News and the Wall Street Journal reported the struggling retailer has reached an agreement with a consortium led by Standard General to refinance about $590 million of loans, allowing it to restock inventory in anticipation of the holidays.

Standard General confirmed last week it was exploring various options with RadioShack to help finance the struggling chain through the holiday season. The retailer, which reported a $137 million net loss for the second quarter and acknowledged it faces possible bankruptcy, has been burning through its cash reserves.