Radio Shack Files For Bankruptcy

Discussion in 'The Howard Stern Show' started by BethSucks, Feb 5, 2015.

  1. BethSucks

    BethSucks Well-Known Member Staff Member

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    I don't think I've been to a Radio Shack since the 80's when they wanted your address and phone number to sell you a battery.

    RadioShack Files for Chapter 11 Bankruptcy Protection

    [​IMG]
    Electronics retailer RadioShack Corp filed for U.S. bankruptcy protection on Thursday and said it had a deal in place to sell as many as 2,400 stores to an affiliate of hedge fund Standard General, its lender and largest shareholder.

    Wireless company Sprint Corp would operate as many as 1,750 of those stores under an agreement with Standard General, Sprint said separately.

    RadioShack's bankruptcy, which has been expected for months, follows 11 consecutive unprofitable quarters as the company has failed to transform itself into a destination for mobile phone buyers. But its sale agreement with Standard General could spare it the fate most retailers suffer in Chapter 11, liquidation.

    RadioShack said in a statement that the Standard General affiliate, called General Wireless, will acquire between 1,500 and 2,400 of its more than 4,000 stores.

    Sprint would occupy about one-third of each RadioShack store, selling "mobile devices across Sprint`s brand portfolio as well as RadioShack products, services and accessories," Sprint said in its statement.

    Other potential buyers will also have the opportunity to bid on RadioShack assets. Any deal will need approval by the U.S. Bankruptcy Court in Delaware, so nothing is etched in stone.

    Sprint's chief executive, Marcelo Claure, in a statement said the deal will "allow Sprint to grow branded distribution quickly and cost effectively."

    In an interview with Reuters earlier on Thursday, Claure said RadioShack had "incredible store locations," and he was keen to acquire some to cut down on long waits at Sprint's current stores. "Customers have to wait one or two hours to get a phone and that's not acceptable," Claure said.

    A spokesman for Standard General did not respond to a request for comment.

    RadioShack, which listed $1.2 billion of assets and $1.39 billion of debts in its Chapter 11 filing, said it also has an agreement with a lender group led by DW Partners for a $285 million loan to operate while in bankruptcy.

    OTHER RESTRUCTURING MOVES

    The Standard General deal is only a piece of its restructuring efforts. The company has a deal with liquidation firm Hilco to shutter underperforming stores and said it has already begun discussions with other potential buyers to acquire the rest of its assets.

    "These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders," RadioShack Chief Executive Joe Magnacca said in the statement.

    The chain's more than 1,000 dealer franchise stores, its Mexican subsidiary and its Asian operations are not part of the bankruptcy, it said.

    Retailers that enter bankruptcy usually liquidate, in large part because of rules under U.S. bankruptcy law that give them precious little time to decide whether to keep or break leases.

    Recent retailers that met their demise in bankruptcy include Loehmann's Inc and Borders Group, which were sold to liquidation firms, and Coldwater Creek. RadioShack hopes to avoid the same fate. It is being advised by law firm Jones Day, investment bank Lazard, and financial advisers at Maeva and FTI.

    The case is In Re: RadioShack Corp, Delaware Court, District of Delaware, Case No: 15-bk-10197.
     
  2. Ta Ta Toothy

    Ta Ta Toothy Well-Known Member

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    Yeah, same here. The last time I was in a Radio Shack, Ronald Reagan was still in office.
     
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  3. Nemo

    Nemo Beer Can Thick Gold

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    worst store ever
    it is amazing they are still around
    like an idiot I go in there a few times a year and always leave empty handed!
     
  4. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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    How in the hell did they manage to EXPAND in the last 10 years?

    Amazing.

    RIP Radio Shack, and your overpriced shit.
     
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  5. chapped

    chapped Well-Known Member

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    shit... where am i going to find a 4 dollar HDMI cable for $50 then?
     
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  6. MutteringJohn

    MutteringJohn Well-Known Member

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    This was Radio Shack before there was a Radio Shack. Originally Tandy Leather Factory.

    [​IMG] [​IMG]
     
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  7. Thikken Vaney

    Thikken Vaney What's everyone looking at?

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    You mean a store that specializes in selling transistors and diodes isn't a money maker??

    *note to self - forget the 'Vaney's vacuum tube Emporium' idea.
     
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  8. Beth Stern

    Beth Stern Well-Known Member

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    Did they really require a telephone number to sell a battery?
     
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  9. tv910

    tv910 Well-Known Member

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    Years ago they at least had knowledgeable salespeople and sold stuff you couldn't find anywhere else. I went to one about a year ago to get a new AC adapter and I couldn't believe how far they'd declined. The shelves were mostly empty and the kid behind the counter had no idea which adapter was a compatible replacement. After I figured out which one to get, it turned out they didn't have the correct plug to connect it to my radio. I went home and immediately found exactly what I needed on eBay for a fraction of the price.
     
  10. BethSucks

    BethSucks Well-Known Member Staff Member

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    No matter what you purchased, they filled out an invoice that required a phone number and address. Asking for a phone number is illegal in California now so,they must have had to alter their policies
     
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  11. JesusTwinsBiggestFan

    JesusTwinsBiggestFan Well-Known Member

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    they had a good super bowl commercial last year
     
  12. scoobyla

    scoobyla Well-Known Member

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    yeah but where are people going to get a new CB antenna at now :facepalm:


    im dumbfounded at how that biz was ran
     
  13. MutteringJohn

    MutteringJohn Well-Known Member

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    [​IMG]
     
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  14. slats7

    slats7 Well-Known Member

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    First SkyMall, now Radio Shack. Excuse me while I head to MySpace to vent my feelings.
     
  15. Petal

    Petal A girl in a sea of mults VIP

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    This. They wanted $19.99 for an alarm system battery, that I could get online or at Batteries Plus for $4.99.

    Yeah, no thanks.
     
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  16. Uncle Larry

    Uncle Larry Well-Known Member VIP

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    Harrible service back in the day and haven't been to one in years

     
  17. MutteringJohn

    MutteringJohn Well-Known Member

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    Most annoying thing at Radio Shack is every time you bought something they would ask for name, address and phone number so they could sent you a catalog. When you told them you didn't want give them your name and address they got real indignant.
     
  18. broccoli rob

    broccoli rob thanks for the memories DW3

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    I heard that Amazon is considering scooping up existing Radio Shack locations to showcase products and offer ship to local store options. Also interested in retaining employees, since the majority of Amazon sales are electronics related.
     
  19. Rupert Pupkin

    Rupert Pupkin That Ass is Attached to Daniela Lopez Gold

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    I have not purchased anything in a RS since I got the catalog about 18-20 years ago. And I went there after seeing a stand-up on Comedy Central goofing on the need to ask for your address to buy minor items like batteries.

    I cannot recall shopping in a RS in the past 15 or so years.

    * Initially, asking for your address was a good marketing move as you were placed on the RS mailing list and started receiving its circulars. I believe they only stopped asking for your address a few years ago. I guess they never heard of e-mail.

    Tone Deaf.
     
    Last edited: Feb 5, 2015
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  20. MISERABLE66

    MISERABLE66 Well-Known Member

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    Theres still a few here where I live and every time I pass it, its empty. I don't know how they're still open. It must cost more in electricity to stay open than they make in a day.
     
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