RadioShack creditors sue Sprint, blame it for latest bankruptcy

Shawn Knight

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RadioShack creditors claim in a recently filed lawsuit that Sprint is largely responsible for the company’s second bankruptcy. They’re seeking $500 million in damages as a result of what they describe as breach of contract on Sprint’s part.

In 2015, the iconic electronics store filed for Chapter 11 bankruptcy. As part of a comeback plan, Sprint partnered with RadioShack on a co-branding strategy involving 1,400 or so retail stores.

In the lawsuit, RadioShack’s creditors claim that Sprint didn’t make good on promises to provide inventory and staff for the co-branded stores. Furthermore, the creditors allege that Sprint used confidential RadioShack information to determine which retail stores received the most business and subsequently opened 200 competing Sprint stores nearby.

The suit claims that Sprint’s actions destroyed nearly 6,000 RadioShack jobs.

David Tovar, a spokesperson for Sprint, said his company was disappointed by the creditors’ actions, adding that the telecom plans to defend itself vigorously.

Sprint, meanwhile, has been keeping busy with other business ventures.

In January, it was announced that Sprint would acquire 33 percent of streaming music provider Tidal for around $200 million. The nation’s fourth largest wireless provider will also be the exclusive US carrier for Essential’s upcoming smartphone and is in the process of hammering out a spectrum licensing deal with Charter and Comcast in which the cable providers would use Sprint’s network to offer their own branded wireless service.

Image courtesy Paul Moseley, Star-Telegram

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They should sue the industry because it's innovating and adapting better than they are.
 
Here's another crock of crap. Anyone putting money into either RadioShack or Sprint is a fool who deserves to lose whatever they invest. To think that either could save the other is pure idiocy. There is no room in the telecom market for Sprint. And trying to sell electronics at 2 to 3 times what other retailers are charging is a strategy that only RadioShack could see as viable.
 
Radioshack REALLY lost it's luster when the stores were managed by "geeks" that could turn a toaster into a nuclear reactor. Those were the folks that could make things happen as well as speak the language. You could walk in with some of the craziest ideas or need seemingly impossible to locate parts, and they would have a box of them at extremely reasonable prices. RIP Radioshack ......
 
Radioshack REALLY lost it's luster when the stores were managed by "geeks" that could turn a toaster into a nuclear reactor. Those were the folks that could make things happen as well as speak the language. You could walk in with some of the craziest ideas or need seemingly impossible to locate parts, and they would have a box of them at extremely reasonable prices. RIP Radioshack ......

I have to take issue with the "reasonable prices" part. Le Shack was one of the most expensive joints in the business..its just that for components they were typically the ONLY game in town.
 
Since 1970 I only went there if I had to. I never liked their business model. Didn't matter if you used cash they wanted too much info from ya
 
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