I am going to track this into the ground or the greatest turn around ever.     RSH is currently trading at $1.10    Recently I have been going into the store at Webster Square and the service is excellent.  Great when you need:

  • batteries
  • any time of cable you can imagine
  • mouse
  • keyboard
  • speakers

At the same time they do not have any printers or monitors and have big reliance on cell phones.   Somehow I believe they could reinvent themselves, now I am not so sure.  Tonight the store was closed at 8, although hours say 9?

Here is what it comes down to.

  1. They are bleeding cash
  2. They really need to close alot of stores estimated 1,100
  3. They do not own any of the stores, but lease
  4. In order to get out of lease
  5. They would need to buy out the lease and burn more cash

The question is do you keep the stores up and hope you turn them around or take the hit on cash now and close them.   Management wants to close but the bond-holders don’t want the big hit on cash to buy out these leases.

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