RadioShack announced that the company has filed for Chapter 11 again. While RadioShack.com 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.”
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.