Business

RadioShack suspended from NYSE as bankruptcy looms

RadioShack exterior Image copyright Getty Images
Image caption RadioShack operates over 4,000 stores in the US, but has struggled to compete with online retailers

RadioShack shares have been suspended from trading on the New York Stock Exchange (NYSE) even as it continues to seek a rescue from possible bankruptcy.

The NYSE said the US electronics firm had failed to comply with its listing standards, and that it was "taking action" to delist the shares.

RadioShack has shed about 90% of its market value over the past year as its financial woes deepened.

The firm will have to shut down all of its stores unless a bidder emerges.

RadioShack shares have traded below $1 since November and tumbled a further 13% on Monday to close at $0.24.

The NYSE said it was forced to act because the "company does not intend to submit a business plan to address its non compliance" with its listing standards of a $50m (£33m) average market over 30 consecutive days.

The 92-year-old firm has struggled to maintain sales and customer loyalty in the face of competition from Walmart and online retailers such as Amazon.

The firm warned last year that it may have to seek Chapter 11 bankruptcy and its chief executive recently warned it might not be able to find a long-term plan to stay afloat.

RadioShack first opened in 1921 as a mail-order retailer before expanding into electronics.

It operates approximately 4,485 stores in the US, which sell everything from mobile phone accessories to converters.

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