RadioShack's Bankrupt?
(RE)meter knew “The Rent was too Damn High!”

Conclusions
(RE)meters TIL Score indicated there was risk of rent loss and store closings as far back as 2009. In the case of Radio Shack, Moody’s and S&P rated Radio Shack as stable till October 2011 while the TIL Score revealed significant real estate risk starting in 2009. The TIL Score revealed high risk for Radio Shack to sustain its rent expense during 2010. Unlike rating agencies commonly used by landlords the TIL Score is a comprehensive score which rates the tenant’s financials, industry and lease terms.

(RE)meter’s TIL Score Insight
In 2009, Radio Shack was rated by (RE)meter’s TIL Score as average risk, however its Lease Score of 338 illustrated significant structural risk. Radio Shack was paying greater rent expense relative to its Revenues and EBITDA than 66.2% of all 40,061 Electronics Stores. During 2010, Radio Shack was paying more in rent than 81.6% of all Electronic stores. This was two years before Radio Shack started to shed significant amounts of leased square footage.

Radio Shacks Real Estate Collapse
Radio Shack’s Company operated stores leased square footage decreased every year from 2010 through 2013 for a total reduction of 836,000 square feet over 189 locations. In addition there were reductions in the closing of 373 Dealer and other outlets locations, 1,522 Target Mobile Centers and 562 Kiosks. Along with reductions in leased retail square footage Radio Shack also reduced its manufacturing, distribution and office space by 716,000 SF. This does not include the significant square footage to be terminated from 2015’s bankruptcy proceedings.

(RE)meters TIL Score is a fast, credible and affordable analytics tool to assess risk of commercial lease tenants and their ability to pay rent. The cost of one TIL (RE)port could have saved many retail landlords hundreds of thousands of dollars in losses for lease could and rent for each Radio Shack lease in their portfolios.

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