In March, the company's shares surged after Tweeter announced a restructuring plan. Its recent Consumer Electronics Playground store format has performed pretty well. In the press release announcing its dismal results, the company was optimistic on the CE Playground performance:

Tweeter's CE Playground stores continue to outperform the Company's traditional shops in margin, sales and in-home installations in their respective markets. Two of these stores were converted from their original format in the past year and both stores registered strong sales increases during the quarter, with their combined sales up 24%. The stores have given Tweeter a unique model to live along side the traditional grab-and-go box retailers.

"We are very encouraged by the success of our Playground stores," said McGuire. "That is why such a large part of our restructuring plan is to continue to execute this concept in our remaining 97 traditional stores by taking what we have learned from our current Playground stores and rolling it into our existing fleet."

Maybe lenders or other investors will see the potential and Tweeter will be able to avoid bankruptcy. But even at 70 cents, the stock looks like a pretty risky bet.