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.