RadioShack racks up losses; Gymboree drifts down; Rue21 releases earnings; oil, gas mixed

By Stephanie N. Rotondo

Phoenix, Dec. 5 – Distressed debt investors turned their attention to retailers on Friday, pushing most of them lower.

RadioShack Corp. has been on the decline for most of the week following the company’s announcement on Monday that it had received a notice of breach of covenant from lenders Salus Capital and Cerberus Capital Management.

The company was again in the headlines Friday, as the International Swaps and Derivatives Association said it had received a notice asking if the notice from lenders has triggered credit default swaps.

The company’s debt continued to drift lower, according to traders.

Gymboree Corp. was also weaker, though there appeared to be no news to act as a catalyst.

In Rue21 Inc. paper, the private retailer’s debt ran up on Thursday as investors prepared for the company’s earnings release after the market closed. Come Friday, the paper was unchanged to weaker on the day.

Away from retail, oil and gas names continued to be mostly soft and a further decline in oil prices did not help.

West Texas Intermediate crude oil fell $1.09, or 1.63%, to $65.72 per barrel. Brent crude oil dropped 84 cents, or 1.21%, to $68.80.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.