RadioShack files for bankruptcy, will share some stores with Sprint and close others

[Shawn Knight]

RadioShack has filed for Chapter 11 bankruptcy but the iconic retailer will live on thanks in part to an indirect partnership with Sprint.

The company reached a deal with Standard Electric in which the latter will acquire between 1,500 and 2,400 of RadioShack’s existing brick-and-mortar stores. Furthermore, Sprint is working a deal with Standard Electric that’ll see them operate as many as 1,750 of the retail stores as part of a store in a store concept.

RadioShack is hoping to get approval to use liquidation specialist Hilco Merchant Resources to shut down the remaining stores. In total, the company operates roughly 4,000 retail locations in the US.

In its bankruptcy filing, RadioShack listed assets totaling $1.2 billion and debts of $1.39 billion. SEC filings reveal the company has approximately 27,500 employees on its payroll.

Under the agreement with Standard Electric, Sprint would effectively operate a store within a RadioShack store. Specifically, the wireless provider will occupy about a third of the retail space of each location.

Sprint employees will use the space to sell mobile devices and plans across all of the company’s brands including Boost and Virgin Mobile. The remaining space will be used to sell RadioShack products, services and accessories.

Each store will be co-branded with Sprint being the primary brand on storefronts and in marketing materials. If the transaction is approved, the wireless provider would more than double its existing 1,100 company-owned retail stores. Sprint said it expects the deal to be finalized in the coming months.

Permalink to story.

https://www.techspot.com/news/59664-radioshack-files-bankruptcy-share-stores-sprint-close-others.html

 

[SirGCal]

If they were the old electronics parts and pieces store they used to be, they'd still be in business and doing well. But being a really crappy over priced gadget store ruined them.

 

[Tazo The Vault]

If they were the old electronics parts and pieces store they used to be, they'd still be in business and doing well. But being a really crappy over priced gadget store ruined them.

I think they were screwed either way. No way in this day and age can a major retailer just sell odds and ends and still afford to even heat their building, let alone staff it. There are far more people that want gadgets than DIY parts and trying to sell both just left them outclassed by every other game in town.

They tried to appeal to the majority and failed, which left no space for the products that they used to be known for, so everyone loses. I think that if there were more people that would pick up a screwdriver when their gadgets had issues instead of going to Geek Squad, the Shack wouldn't be so whack.

 

[cliffordcooley]

I think that if there were more people that would pick up a screwdriver when their gadgets had issues instead of going to Geek Squad, the Shack wouldn't be so whack.

That is a valid point. But then you also have to look at how corporate has gone out of their way, in making sure the consumer couldn't repair their own gadgets. Corporate wants consumers to buy new gadgets, not repairing their old ones. Truth be told the consumer would also rather have a new gadget than continuing to use their old one. After all whats the point when a gadget is considered outdated, after only a year of service. Three or four years and you would be lucky to find replacement parts.