Summary of the Article
US electronics retailer RadioShack has filed for bankruptcy protection after a series of unprofitable quarters. Many of its stores may be operated by …
© 2015 DW.DE, Deutsche Welle
US electronics retailer RadioShack has filed for bankruptcy protection after a series of unprofitable quarters. Many of its stores may be operated by wireless company Sprint, but nothing is set in stone yet.
Texas-based retailer RadioShack filed for protection from creditors in a move that had been expected for months.
The company had logged 11 unprofitable quarters in a row after failing to transform itself into a destination for mobile phone buyers.
But a sale agreement with its lender and largest shareholder, hedge fund Standard General, provides a silver lining. RadioShack said it a deal in place to sell up to 2,400 stores to an affiliate of Standard General, with wireless company Sprint to operate as many as 1,750 of those stores under and agreement with the hedge fund.
Sprint said it would occupy about one-third of each RadioShack store to sell mobile devices across it brand portfolio as well as RadioShack products, services and accessories.
Sprint CEO Marcelo Claure told Reuters RadioShack had “incredible store locations,” which would help to cut down on long waits at Sprint’s current stores.
Other potential buyers will also have the opportunity to bid on RadioShack assets, with any deal requiring approval by the US Bankruptcy Court in Delaware.
Underperforming stores would be shuttered, RadioShack said, adding the current steps being taken were “the culmination of a thorough process intended to drive maximum value for our stakeholders.”
RadioShack is a 95-year-old company that began as a mail-order radio service. It has a workforce of 21,000 employees.
hg/pad (Reuters, AP, dpa)
first published: 2015-02-05 15:53:41