It appears that the RadioShack brand will live on despite today’s Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware. But the iconic electronics retailer will have a much-smaller footprint.
RadioShack has signed an asset purchase agreement with General Wireless Inc., an entity formed by New York-based investment firm Standard General, to acquire between 1,500 and 2,400 of RadioShack’s U.S. Company-owned stores.
General Wireless has agreed in principle on terms with Sprint to establish a new dedicated mobility store-within-a-store retail presence in up to 1,750 of the acquired stores. This agreement-in-principle is subject to negotiation of definitive documentation as well as court approval.
In addition, RadioShack has filed a motion proceed with the closure of the remaining company-owned stores under an agreement with liquidation firm Hilco Merchant Resources.
RadioShack said on its corporate site that it expects to continue to maintain day-to-day operations at its open stores and at RadioShack.com throughout the sale process.
RadioShack currently has approximately 4,000 company owned stores in the U.S. Its more than 1,000 dealer franchise stores in 25 countries, the stores operated by its Mexican subsidiary, and its Asia operations are not included in the Chapter 11 filing or the agreements announced today.