RadioShack's downfall has been making headlines ever since March, when the chain announced they would be shuttering over 1,000 stores across the U.S. But a hedge fund is now extending a lifeline, allowing business to continue through the ever important holiday season.
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Standard General and Litespeed Management, a hedge fund with 10 percent stock in the company, is giving RadioShack $120 million to help pay off existing debts and perhaps help give the chain new life, CNN Money reports. The hope is that if RadioShack has a successful holidays season, it will get back on secure footing and pull ahead.
A lot of the money will be used to close a lot of those 1,000 stores, which was announced in March. So far, RadioShack hasn't had the money to pay severance and end its leases. The millions from Standard General and Litespeed Management will help do so.
In the meantime, all the stores will be pushing their products hard. RadioShack depends on its sales of tablets and smartphones, which make up more than 50 percent of their sales.
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