RadioShack and related companies have filed for Chapter 11 bankruptcy in Delaware, while announcing plans to close stores with others become cell phone stores.
Radio Shack announced it signed an asset purchase agreement with General Wireless Inc., to acquire between 1,500 and 2,400 of RadioShack’s U.S. company-owned stores that would be converted to stores selling Sprint wireless phones.
The Quartz business news website listed six stores in Delaware that are slated to close.
As part of this process, other parties will have an opportunity to submit offers for RadioShack’s. stores.
RadioShack stores outside the U.S. are not included in the filing.
A list of the stores slated for closure will be posted in the near future on the restructuring information section of the company’s web site at http://www.radioshackcorporation.com..
RadioShack has nearly 4,000 company owned stores in the U.S.
Discussions are underway with interested parties to sell all of the company’s remaining assets.
The company has been struggling for years as customers went elsewhere and the company was unable to attract enough cell phone customers. The store also catered to electronic hobbyists, who increasingly rely on buying via the internet.
Over the years, the company bungled many opportunities. In the early days of the personal computer era, it offered an early version of the laptop computer, but could not keep up with the changes in the industry. Also, its small stores did not have the space to offer a large selection of computers or big screen TVs.
The lack of customers in stores became fodder for jokes by late night talk show hosts.
Delaware has long been a center for retail bankruptcy cases. In many cases, Chapter 11 retail bankruptcies often end up as liquidations as assets are sold off.
Click here for a press release regarding the bankruptcy filing.
