A business, just like an individual person, can find itself in financial difficulty. However, just like a person in Iowa or in any other state, a business also has the option of filing for bankruptcy. RadioShack may now be looking at the possibility of having to file a Chapter 7 bankruptcy due to its continuing trend of profit losses.
The company's latest quarterly earnings reports have revealed a pattern of profit losses and declining revenues for the company. This has prompted many Wall Street analysts to drop the company's price target for its stocks dramatically. RadioShack has confirmed that if the company cannot restructure its debt or find a buyer, it may have to file a Chapter 7 bankruptcy.