RadioShack Files Bankruptcy for Second Time
- Author: Toni Ryan Mar 10, 2017,
Mar 10, 2017, 0:40
RadioShack tried to keep the brand going after its first bankruptcy by teaming with wireless provider Sprint.
In its bankruptcy filing, General Wireless listed assets and liabilities of $100 million to $500 million each. The Company is closing approximately 200 stores and evaluating options on the remaining 1,300.
Privately-held General Wireless Operations (d/b/a RadioShack) and three affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of DE, lead case number 17-10506. Its brand and stores were acquired by General Wireless, a joint venture of Sprint and hedge fund Standard General.
RadioShack, which had 7,000 stores at its peak in the mid 1970s, closed 50 New Jersey locations in 2015 in a cost-cutting move that shuttered about half its locations.More news: GST Council clears Central, Integrated GST Laws
The Fort Worth Star-Telegram wrote Monday that Sprint had removed its wireless product displays from some area RadioShack stores there.
In a statement, Sprint omnichannel sales president Kevin Crull described the bankruptcy and store closings as "an unfortunate development for this storied retailer", but said it would have no material impact on its overall sales results. However, for a number of reasons, most notably the surprisingly poor performance of mobility sales, especially over recent months, we have concluded that the Chapter 11 process represents the best path forward for the Company.
The store's location in Bay City at 4073 North Euclid Avenue is set to close, said Anthony Johnson, the manager of that location. "In an age of growing competition from online retailers such as Amazon, traditional brick-and-mortar stores are in trouble", CNN Money noted. Federal statistics show that nearly 6,000 electronics and appliance stores have closed in the United States in the past decade, or more than one in 10.