Dive Brief:

• A deal to refinance $590 million of debt gives struggling electronics retailer RadioShack a chance to bulk up its inventory and meet the demands of the holiday season.

• A group led by hedge fund Standard General is working to improve the retailer’s liquidity, according to a filing. That includes refinancing a $535 million asset-backed credit line and other debt, sources told Bloomberg, which could lift restrictions over how much cash the retailer can take from the revolving credit line.

• The agreement could also give the retailer more freedom to close the number of stores it planned as part of a turnaround, something that was blocked by some of its lenders. 

Dive Insight:

In addition to being stymied by many of its lenders in its efforts to cut costs, RadioShack has also been at the brink of bankruptcy. This debt reshuffling and, as a result, the potentially greater freedom to manage its turnaround could help prevent that, especially if it can have a decent holiday.