Dive Brief:

• RadioShack Thursday reported that its Q3 net sales were $650.2 million, down from $775.4 million in 2013 and below expectations. Same-store sales were down 13.4%, overall sales down 16.1%. Its net loss was $161 million, worse than expected.

• Its own retail business fared better. At company-operated stores, same-store sales were down just 2%, and its concept stores performed better than the others, the company said. Thanksgiving was a good weekend for the struggling retailer, with same-store sales up 35%.

• The retailer is in talks with lenders to close more stores and will lower marketing expenses to cut costs, said CEO Joseph Magnacca.

Dive Insight:

Things are looking more dire than ever for RadioShack. The unfortunate truth for the retailer is that it’s hard to know where it may be if it hadn’t been so hampered months ago by its lenders in its plan to cut stores and implement its turn-around strategy. 

And just this week, Salus Capital contended that RadioShack breached the terms of its $250 million term loan with its agreement with Standard General, which provided financing that could have helped, and demanded immediate payment. CEO Joseph Magnacca is understandably reportedly furious, but it's not clear what can be done. The parties are still in talks.