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Published: Fri, March 10, 2017
Economy | By Melissa Porter

RadioShack to close 200 more stores, files for bankruptcy again

RadioShack to close 200 more stores, files for bankruptcy again

"RadioShack.com, stores and dealer locations across the country are still now open for business and serving customers", the company said in a news release.

The company that filed for bankruptcy protection today isn't technically the same business that went under back in 2015.

Just over two years ago, the electronics chain declared bankruptcy and then reorganized its business, closing thousands of stores and selling others to a hedge fund called Standard General, which took over the remaining business through its affiliate General Wireless.

At the time, RadioShack handed General Wireless rights to the company's brand and some 1,700 stores for $26 million.

General Wireless announced Thursday that it had entered a Chapter 11 filing in the U.S Bankruptcy Court in Delaware.

The company said it's now exploring "all available strategic alternatives" to maximize value for creditors, including the possibility of keeping stores open on an ongoing basis. "We greatly appreciate their hard work and dedication", said RadioShack CEO and President Dene Rogers in a statement. Since that time it has added "stores within stores" for Sprint products.

The company that set out to revive the fortunes of RadioShack, the venerable consumer-electronics chain, filed for bankruptcy after failing to keep up with changing consumer habits. But RadioShack CEO Dean Rogers indicated that effort had failed, even though the company reduced operating expenses by 23% past year while increasing gross profit by 8%.

"For a number of reasons... we have concluded that the Chapter 11 process represents the best path forward for the company", Rogers said Wednesday.

Employees said they were not allowed to speak on the record, but indicated all RadioShack stores were conducting the same sale.

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