Money-losing RadioShack Corporation (NYSE:RSH), after recently confirming that it is indeed in discussion with investment banks to strengthen its balance sheet, has hired Peter J. Solomon, a banking advisory firm, The Wall Street Journal reported on Monday.

RadioShack

RadioShack hires advisory firm

RadioShack Corporation (NYSE:RSH) took a swipe at a trade publication report earlier this month that said it was seeking a financial advisor to fix its balance sheet in the face of bond maturities, cash burn and excess stock levels. It said then its balance sheet was strong, with $820 million liquidity at the end of the first quarter. The company also has said it is focused on its turnaround.

Stiff competition in a changing electronics landscape

RadioShack Corporation (NYSE:RSH) has seen declining sales and widening losses as it lost store traffic in a changing electronics landscape redrawn by online and discount competition including Amazon.com. Its move to focus more on the less-profitable mobile phones and tablet devices also has hurt results, analysts have said. It has hired former Walgreen Co.  executive Joseph Magnacca as CEO this year.

Peter J. Solomon has counted major retailers as clients

The New York-based firm was chosen by the electronics retailer because of its retail experience, past experience with the chain and because the firm isn’t known for handling companies that are in a desperate situation, which would carry a stigma, the Journal reported, citing people familiar with the matter.

Peter J. Solomon has counted major retailers as clients. It’s advising Office Depot Inc (NYSE:ODP) on its pending merger with OfficeMax Inc (NYSE:OMX); helped PVH Corp (NYSE:PVH) in its purchase of Warnaco Group Inc (NYSE:WRC) and Tommy Hilfiger. It also assisted Walgreen in its 2010 purchase of Duane Reade. Magnacca was president of Duane Reade at the time of Walgreen’s acquisition.

The Wall Street Journal reported that RadioShack Corporation (NYSE:RSH) hopes to reverse falling sales and bolster its image as a retailer. The Journal said that RadioShack does not have a defined strategy yet for its finances and is exploring all alternatives. It said the RadioShack has sufficient liquidity to take some time evaluating its options

RadioShack Corporation (NYSE:RSH) reports its second-quarter results before the market opens on Tuesday, and analysts will want to see if new CEO Joe Magnacca’s plan for RadioShack is taking hold in its early stages. Magnacca has already started rebranding the retailer with a new logo and a new concept store that opened recently in New York City.