Radioshack going out of business deals

Radioshack going out of business deals

Radioshack going out of business deals

On Friday, February 6, , the year old consumer electronics retailer Radio Shack announced that it would be closing 1, of its brick-and-mortar retail store locations in the U. These store closings are part of a Chapter 11 bankruptcy which was filed just one day earlier on Thursday, February 5, At the time of the filing, Radio Shack had more than 4, company-owned and operated retail stores located in the U. So, where are the Radio Shack going out of business sales taking place in and which states will be hit the hardest and suffer the largest losses of retail leases and retail jobs? The short answer is that Radio Shack will be closing retail stores in 49 states, plus the District of Columbia and Puerto Rico. The states with the largest number of RadioShack store closings in include California with store closings, New York with store closings, Texas the retail headquarters of RadioShack with store closings, and Florida with store closings.

In comeback bid, RadioShack partners with HobbyTown to sell electronics in US stores

It has struck a deal to sell up to 2, of its approximately 4, stores and wireless company Sprint S will create a "store within a store" in up to 1, of those. RadioShack said that its remaining stores are expected to close. The company s franchise locations, as well as stores in Mexico and Asia, are not included in the deal. But RadioShack is not completely going away. Customers will still be able to purchase RadioShack products, services and accessories at the approximately 1, stores where Sprint will open shop.

In fact, Sprint will occupy just one third of those locations, where it will sell devices and plans. The stores will be "co-branded," according to a Sprint spokeswoman. The bankruptcy announcement is no surprise. It s been a long, slow decline for RadioShack. Cash-strapped, RadioShack found itself saddled with more than 5, stores at the beginning of last year, many of which it couldn t afford to keep open.

But closing stores is expensive, due to the cost of severance, liquidating merchandise and paying penalties to get out of leases. And RadioShack has been so low on cash it couldn t afford to close enough of the stores strangling its business. Last March, the company announced a plan to close about 1, stores , but it was only able to close stores through the end of October. By year s end it was battling with its lenders to get the green light to close more. RadioShack employees: Tales from the walking dead.

RadioShack goes back to , when it opened a store and mail-order operation in Boston to serve the needs of radio officers aboard ships. It was bought in by Tandy Corporation, a retailer that started as a supplier of leather parts to shoe repair shops. For a time RadioShack prospered from Americans growing love affair with technology. It introduced one of the first mass-market personal computers, the TRS, in , and one of the first laptops, the Model , in It also was an early seller of both cell phones and satellite television systems.

Travel back in gadget time with RadioShack. Personal Finance. CNNMoney Sponsors. SmartAsset Paid Partner. NextAdvisor Paid Partner.

RadioShack declares bankruptcy

For 95 years, do-it-yourselfers looked to RadioShack for parts, products and advice. Like many brick-and-mortar retailers, RadioShack has suffered from changes in customer behavior and retreated to Chapter 11 to restructure. Attorney Stephen Selbst provides an in-depth look at the missteps that sent RadioShack into bankruptcy. Stephen B.

The year-old toy company is bringing its signature electronics back to stores across America in a new partnership with HobbyTown after emerging from bankruptcy — for a second time — as a shell of its former self late last year. It s the first big move since the consumer electronics chain emerged from its second bankruptcy in , giving it more exposure to many of the suburban markets it had to give up when it shuttered more than 1, stores that year.

RadioShack , formerly RadioShack Corporation , is the trade name of an American retailer founded in Since , General Wireless Operations, Inc. All stores are located in the United States. While outside of those listed areas, the company had sold licenses to other companies to be able to use the Radio Shack brand name in other parts of the world that had included parts of Asia, North Africa, South America, Central America, and the Caribbean. On February 5, , the company filed for Chapter 11 protection under United States bankruptcy law after 11 consecutive quarterly losses.

RadioShack Is Now Selling in Unexpected Places. Will Anyone Buy?

It has struck a deal to sell up to 2, of its approximately 4, stores and wireless company Sprint S will create a "store within a store" in up to 1, of those. RadioShack said that its remaining stores are expected to close. The company s franchise locations, as well as stores in Mexico and Asia, are not included in the deal. But RadioShack is not completely going away. Customers will still be able to purchase RadioShack products, services and accessories at the approximately 1, stores where Sprint will open shop.

RadioShack declares bankruptcy

Click on the Add to next to any video to save to your queue. Click on the Add to next to any article to save to your queue. Click on the Add to next to any podcast episode to save to your queue. Click the Follow button on any author page to keep up with the latest content from your favorite authors. This story appears in the December issue of Entrepreneur. A brown delivery box on wheels stops outside a HobbyTown in Fairfield, Conn. A muscular, bald-headed UPS driver hops down from the seat, marches into the low-slung building, and plunks a pound box next to the register. He pulls back the cardboard flaps to reveal a nest of curios wrapped in plastic: Rosenblum opened his HobbyTown 11 years ago.

In comeback bid, RadioShack partners with HobbyTown to sell electronics in US stores

None of the numerous store closures this year have been quite as tumultuous as RadioShack s. Now, after a failed turnaround attempt and two bankruptcies, the chain is officially closing completely. Its last act is what any year old sophomore might do to save up for a Coachella ticket — selling off old junk. The former reader-favorite electronics giant initially filed for bankruptcy in after failing to turn a profit for its third year in a row. That move saw 2, stores close. Although it seemed like the brand could be saved by General Wireless a joint venture between Sprint and Standard General when it took charge of the remaining 1, stores, a new agreement in March of this year saw RadioShack file for bankruptcy for a second time. As it stands, hundreds of its outlets will officially close and be replaced by Sprint stores.

RadioShack rescue deal dogged by fights, demands for new auction

RadioShack, which filed for bankruptcy last month, told a U. The hedge fund plans to operate the stores in conjunction with wireless phone company Sprint Corp. The hearing to approve the agreement quickly deteriorated into disputes among lenders over the complex agreements that governed the repayment among creditors. Goffman said there was little activity during the auction, and Standard General did not attend much of it. Most of the two-hour hearing prior to a lunch break focused on complicated agreements that lenders negotiated among each other. The lenders sparred over the question of whether those agreements allowed Standard General to pay for its proposal by forgiving some of its debt, a process known as credit bidding. Bankruptcy Judge Brendan Shannon called for witnesses in the afternoon to testify about the auction to help determine if the process was fair.

The company had too many stores that cannibalized revenues from each other and generated losses. RadioShack failed to adapt and stay relevant when most electronics sales shifted online, and the retailer was stuck in brick-and-mortar locations only. The company frequently changed its management and direction for the turnaround. The company made a financial mistake by taking a loan from Salus Capital in that required the lender to close more than stores a year. In , RadioShack operated about 4, stores in North America. However, there were many stores that were located too close to each other. For example, there were 25 stores near Sacramento, California, located within a mile radius, and seven stores within five miles around Brooklawn, New Jersey. With so many stores within close proximity to each other, RadioShack experienced a significant drop in profitability and inventory problems as the store traffic dried up. It became very costly to maintain so many stores with sometimes insufficient inventory in one area.

This link has a list of stores closing, you may want to check this before wasting time reading this post.

When it comes to why RadioShack RSH is now preparing to hit dead air, there s a long rundown of problems that led to this point. The company is nearing its last gasp after a series of self-inflicted missteps that set in play its money-losing decline. The New York Stock Exchange on Monday suspended trading in its common shares and started proceedings to delist the company , which has more than 4, stores across the country. The company is preparing to shut down the chain in a bankruptcy deal, and is in discussions to sell some leases and locations to both Amazon and Sprint, according to Bloomberg News. Amazon is reportedly considering using some locations to show off its hardware, such as its Kindle Fire tablets, as well as pick-up locations for orders. RadioShack was once the byword for the place to buy the latest in electronics, from CB radios remember those? But after its heyday, from its success with ham radio enthusiasts through the early s, the company made a number of missteps. Some of these involved failing to spot up-and-coming competition, such as Amazon, while others included confused marketing strategies and a poor mix of inventory. After starting out in by selling supplies to radio officers on ships, the business expanded into retail stores in the Northeast, as well as operating a mail-order business for electronics. The next few decades marked a string of successes for the retailer, including riding the CB radio craze in the s, as memorialized in pop culture classics such as s "Smokey and the Bandit" and the hit song "Convoy," about truckers using their CBs to spark a revolt. It ended up as a surprise hit for the electronics retailer, but RadioShack failed to leverage that into additional successes in the PC market.

A US bankruptcy court has approved a plan to save RadioShack s remaining retail stores. RadioShack, founded in to serve the then emerging radio equipment market, filed for Chapter 11 bankruptcy in February. But some RadioShack stores will survive after the company was bought by hedge fund Standard General. In keeping the stores open, Standard is sharing store space with wireless carrier Sprint. As reported by Reuters , the stores will carry both the Radio Shack and Sprint names, and Sprint will occupy about a third of each store. The deal came Tuesday amidst protests from lenders that could have killed RadioShack s chances for survival. Reuters explains that RadioShack was forced to finalize a deal by April because Chapter 11 give companies only a few months to break leases, which is critical for retailers. Only about 1, of RadioShack s more than 4, stores have survived the bankruptcy.

Radio Shack filed for Chapter 11 Bankruptcy on February 5th, , and have since announced that they are closing somewhere between and stores, depending on which source you read. Not every Radio Shack store is shutting down. Radio Shack posted a PDF list on its website of the stores that are closing. This discount applies to everything in the store, including tools, electronics kits, cables, batteries, and radio equipment. From my talk with the manager, I found out there are two type of stores: A and B. A stores close next Sunday and are the ones with the higher discounts. B stores close at a later date and have the less progressive discounts. I know not all Radio Shack stores are closing, but this is a sad day for me. While other kids my age were browsing the music store, I spent hours browsing in Radio Shack. It played a large part in getting me interested in electronics and ultimately becoming an electrical engineer. Quartz , CNN Money. Radio Shack Liquidation Sales.

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