Summary of the Article
Electronics retailer RadioShack Corp (RSHC.PK) filed for U.S. bankruptcy protection on Thursday and said it had a deal in place to sell as many as …
Electronics retailer RadioShack Corp (RSHC.PK) filed for U.S. bankruptcy protection on Thursday and said it had a deal in place to sell as many as 2,400 stores to an affiliate of hedge fund Standard General, its lender and largest shareholder.
Wireless company Sprint Corp (S.N) would operate as many as 1,750 of those stores under an agreement with Standard General, Sprint said separately.
RadioShack’s bankruptcy, which has been expected for months, follows 11 consecutive unprofitable quarters as the company has failed to transform itself into a destination for mobile phone buyers. But its sale agreement with Standard General could spare it the fate most retailers suffer in Chapter 11, liquidation.
RadioShack said in a statement that the Standard General affiliate, called General Wireless, would acquire between 1,500 and 2,400 of its 4,100 stores.
Sprint would occupy about one-third of each RadioShack store, selling “mobile devices across Sprint`s brand portfolio as well as RadioShack products, services and accessories,” Sprint said in its statement.
Well, it’s official. Sigh.
first published: 2015-02-05 21:07:45