Thursday night RadioShack announced they will sell between 1,500 and 2,400 stores of their approximately 4,000 to Standard General and Sprint after filing for Chapter 11 Bankruptcy. RadioShack has filed with $1.2 billion in assets and $1.38 billion in liabilities. Word of bankruptcy began back in September when RadioShack began receiving additional funding but it clearly did not increase their lifespan for long.
Standard General and Sprint will be undergoing a “store within a store” concept nationwide. An agreement was made to keep the “RadioShack” name in up to 1,750 stores but the branding in the majority of stores will be Sprint thanks to an agreement made with Standard General.
“While I am heartbroken to see RadioShack in so much trouble, I am also very happy to see Sprint gaining lots of retail storefronts to gain market share,” Jeff Kagan, a wireless analyst states.
The company has been attempting to modernize in recent years by veering away from its core market of niche radios and computer parts to focus more on cell phones, wireless contracts, and mainstream electronics like Beats headphones.
The Chapter 11 filing does not include RadioShack’s operations in Mexico and Asia.
RadioShack was at one point a top tier company but with the dated word like “radio” in the name, it is not a surprise to see this company sink.