RadioShack files for bankruptcy, faces liquidation
- Author: Todd Kelly Mar 10, 2017,
Mar 10, 2017, 0:29
The electronics chain now operates 10 stores in Western Mass., and one store in Worcester and over 30 in the eastern part of the state.
"The bottom line is that RadioShack's Chapter 11 filing is not material to Sprint's business and we have an agreement in place to convert several hundred RadioShack stores to Sprint company owned retail stores", a Sprint spokeswoman said in an email.
RadioShack is owned by a hedge fund which acquired its trademark and many of its stores following the 2015 bankruptcy.
The Fort Worth, Tex. -based company previously filed for bankruptcy in 2015.
In its filing, General Wireless listed assets and liabilities in the range of $100 million to $500 million.
The company claims lackluster results from a partnership with wireless carrier Sprint contributed to the bankruptcy filing.
"Entire store on sale" and "Everything must go" signs now cover the storefront windows. But RadioShack CEO Dean Rogers indicated that effort had failed, even though the company reduced operating expenses by 23% a year ago while increasing gross profit by 8%.
RadioShack's CEO says the company will close about 200 stores and is evaluating the status of the remaining 1,300 stores. "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". The electronics chain filed for bankruptcy in 2015.
However, for a number of reasons, most notably the surprisingly poor performance of mobility sales, especially over recent months, we have concluded that the Chapter 11 process represents the best path forward for the Company.
RadioShack is not the only brick-and-mortar electronics retailer to face headwinds.