RadioShack Files for Chapter 11 Bankruptcy After Striking Deal to Sell Some Stores (Sprint)

The New York Times' DealBook ^ | February 5, 2015 | Rebecca R. Ruiz and Michael J. de la Merced

[2ndDivisionVet]

For years, RadioShack — the retailer that helped bring personal computers to the masses — outlasted untold predictions that it would buckle in the face of bigger rivals and online competitors.

But its clock has finally run out.

RadioShack, a long-ailing 94-year-old electronics chain, filed for bankruptcy protection on Thursday after striking a deal to sell up to 2,400 of its stores to the wireless service provider Sprint and a hedge fund that is its biggest shareholder.

The Chapter 11 filing, made in federal bankruptcy court in Delaware, took few unaware. RadioShack had not turned a profit since 2011, and its fate had been a regular topic of speculation in the retail and corporate restructuring circles.

“The surprise is that they survived this long,” said Michael Pachter, an analyst at Wedbush Securities. “I didn’t think they’d last through Christmas 2013.”(continued)

[GeronL]

Somewhere there was a report that Amazon might pick up some of the stores.

[Star Traveler]

Yeah, I saw that posted here, too.

[Spktyr]

Word I heard this morning was Amazon actually sent out people to look at the store locations (as opposed to just looking at them on a demographics map) and decided against it.

[2ndDivisionVet]

I have a feeling that hundreds of “Vape” shops, Taco eateries, thrift stores, Himalaya salt, 3D printer, hair braiding establishments, everything-for-a-dollar, and trashy lingerie stores are about to spring up in those spaces.

[GeronL]

lol

[GeronL]

very interesting!

[Spktyr]

No, that’s what the RadioShacks are already surrounded by. Very few of them are in higher class surrounds.

[kaehurowing]

The Age of Aquarius.

[roadcat]

Radio Shack stores that are being shut down are having discount sales. However, even with the discounts (most are 25 percent off), you can buy the items from Amazon at a fraction of the RS sales prices. Buyer beware, unless they go 90 percent off their normal prices, you may still be better off going to Amazon. The crazy thing I found out last week, is that if you return any items you purchased on sale at these RS stores, that they are tossed in the garbage can. Idiotic policies doomed this chain.

[Kickass Conservative]

No, Hillary Campaign Headquarters.

[StoneWall Brigade]

Interesting

[Frank_2001]

Hey! How about karate studios?! ;)

[Still Thinking]

This is annoying in a way. Despite their utter lack of any technical knowledge or business etiquette, in many towns, it’s the only place where you can go to buy a resistor or a relay in a (work) emergency. You don’t always have the time to mail order parts. I really hated it when the old-timey electronics shops died out, leaving us in the hands of the morons at Radio Shaft with their high prices, inferior selection, and grossly inflated impression of their level of electronics knowledge, but they do serve a purpose in certain narrow scenarios.

[Swordmaker]

I have a feeling that hundreds of “Vape” shops, Taco eateries, thrift stores, Himalaya salt, 3D printer, hair braiding establishments, everything-for-a-dollar, and trashy lingerie stores are about to spring up in those spaces.

You forgot SubWay sandwich shops. . .

[2ndDivisionVet]

Subway is already the biggest restaurant chain in the world. Much larger than McDonalds, Taco Bell, KFC and the rest.

[Jonty30]

Although this is armchair quarterbacking, Radio Shack should have separated its cellphone business from its radio business. If it had kept the two separate, it might have been in business today.

[Swordmaker]

Subway is already the biggest restaurant chain in the world. Much larger than McDonalds, Taco Bell, KFC and the rest.

Are you sure Le Dumpster hasn't overtaken them in the age of Obama?

[Spktyr]

Digi-key, Waytek, and Mouser are your friends. Best have a reasonable stock of spares, then.

[2ndDivisionVet]

What’s Le Dumpster? Or are you literally saying dumpster diving? LOL