RadioShack Files for Bankruptcy Again, Closing 200 Stores

Content Manager

RadioShack announced that the company has filed for Chapter 11 again. While and store locations remain open, the company plans on closing 200 stores and evaluating the remaining 1,300.

[Related: Radio Shack Prepares to File for Bankruptcy]

General Wireless Operations Inc., Radio Shack’s parent company and its advisors are currently exploring alternatives to maximize value for creditors including the possibility of keeping stores open on an ongoing basis, according to a press release.

“For nearly 100 years, RadioShack has proudly served local communities across the United States, offering consumers unique, high-quality products at a great value, said RadioShack’s President and CEO, Dene Rogers. “Over the course of the past two years, our talented, dedicated team has worked relentlessly in an effort to revitalize the company and the RadioShack brand, while providing outstanding service to our customers. We greatly appreciate their hard work and dedication.”

[Related:Will 2015 Be the Year of Retail Chapter 11s?]

Rogers said since emerging from bankruptcy two years ago as a privately owned company, its team has made progress in stabilizing operations and achieving profitability in the retail business, while its partner Sprint managed the mobility business.

“In 2016 we reduced operating expenses by 23%, while at the same time saw gross profit dollars increase 8%,” said Rogers. “Over the same time, we integrated FedEx pickup/drop-off into 140 RadioShack locations, delivered to customers over 700,000 Hulu login pins and sold more than a million RadioShack private brand headphones and speakers delivered high quality, value-based audio products to consumers across the country.”

Rogers said however, for a number of reasons, most notably the poor performance of mobility sales, especially over the recent months have led to RadioShack’s filing of Chapter 11 process that represents the best path forward for the company.

“We will continue to work with our advisors and stakeholders to preserve as many jobs as possible while maximizing value for our creditors,” said Rogers.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.