Sprint + bankrupt RadioShack = ?
Sprint is in way over its head. This is going to be a big FAIL.
The 1,743 retail outlets that survived RadioShack’s February bankruptcy have been acquired by General Wireless Inc, an affiliate of Standard General LP. General Wireless this week received US Bankruptcy Court approval to acquire the inventory and assume the leases of the RadioShack stores. The acquisition followed an auction, conducted under the US Bankruptcy Code. The current plan calls for “co-branding” about 1440 of the surviving stores with cellular phone provider Sprint Corp.
“This has admittedly been a difficult time for all RadioShack supporters,” said Soo Kim, Managing Partner of Standard General, the majority shareholder of General Wireless. “[T]his transaction is an important milestone in this storied company’s history. It has allowed the company to shed stifling debts and unprofitable business lines.”
RadioShack once offered entry-level shortwave receivers, Citizens Band gear, a wide array of discrete components — including transistors, resistors, and capacitors — and, for a time, a fairly popular 2 meter hand-held transceiver and two different models of 10 meter single-band transceivers.
Kim said Standard General looks forward to partnering with RadioShack’s 7500 employees, its landlords, and with Sprint “to rebuild a great American company.”
He said Standard General would be introducing “our talented management team” in the coming weeks. The new team would consist of both new and continuing RadioShack executives.
RadioShack said its partnership with Sprint would help reposition the retailer “as the premier community destination for consumer electronics” and that stores would feature “emerging technologies that enhance the traditional accessories, DIY electronics and innovation for which the company is known.”
In the near term, RadioShack has said that it expects to continue to maintain day-to-day operations at its open stores and on its website at RadioShack.com.