Radio Shack plunges on report of bankruptcy

Mike Snider | USA TODAY

RadioShack (RSH) shares on Thursday plummeted a whopping 35.6% -- to a scant three nickels per share -- on a report that the company could file for bankruptcy protection reportedly as soon as next month.

The embattled consumer electronics retailer is in talks with a private-equity firm that could buy its assets out of bankruptcy, according to The Wall Street Journal, which cited sources familiar with the people familiar with the matter.

Last month, the Fort Worth, Tex.-based chain reiterated that bankruptcy proceedings could result if its own revitalition plan proved unsuccessful.

On Thursday, RadioShack said that it had no comment other than to say that the company has not confirmed any of the information being reported.

The company had mentioned bankruptcy back in September.

RadioShack has faced losses over the last two years and has closed 175 underperforming stores already in its current fiscal year, which ends Jan. 31. It had announced plans to close a total of about 200 of its roughly 4,000 U.S. stores this year.