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(Reuters) - Electronics retailer RadioShack Corp RSH.N might prepare to file for bankruptcy protection by next month, the Wall Street Journal reported citing people familiar with the matter.
Texas-based Radioshack is in talks with a private-equity firm that could buy its assets out of bankruptcy, the Journal reported, citing sources.
The talks may not produce a deal, and RadioShack may opt for other debt-restructuring options that do not include a sale, the Journal said.
RadioShack has reached out to potential lenders that could provide a loan to fund its operations during the bankruptcy case, the Journal added.
RadioShack was not immediately available for comment.
The retailer, which reported a bigger-than-expected third-quarter loss last month, warned in September that a bankruptcy filing was a possibility.
Salus Capital Partners had said it would provide $500 million to RadioShack in a kind of debtor-in-possession loan used by companies to fund operations in bankruptcy, the Wall Street Journal previously reported.
RadioShack's shares have fallen nearly 60 percent since its bankruptcy warning through Tuesday's close.
Reporting by Anet Josline Pinto in Bengaluru; editing by Andrew Hay