Struggling consumer electronics retailer RadioShack Corp. RSH, -22.82% is preparing to file for bankruptcy protection as soon as next month, according to people familiar with the matter.
One of the people said the filing could come the first week of February.
The Fort Worth, Texas, company is in talks with a private-equity firm that could buy its assets out of bankruptcy, the people said. They cautioned that the talks may not produce a deal, and the company may opt to pursue other debt-restructuring options that don’t include a sale.
RadioShack also has reached out to potential lenders that could provide a loan to fund the company’s operations during the bankruptcy case, one of the people said.