Despite deal with Sprint, Radio Shack says it would accept bid to liquidate

Despite deal with Sprint, Radio Shack says it would accept bid to liquidate
Just yesterday, we told you that Radio Shack had filed for bankruptcy and as a result, Sprint could get retail space in as many as 1750 stores. But as we pointed out, any deal has to be approved by the Bankruptcy Court in Delaware; until that happens, the company is still up for bids. Today, a lawyer for the beleaguered electronics retailer said that the company continues to accept any bids, even those from liquidators looking to pick up assets on the cheap.

Radio Shack lawyer David Fournier says that a better bid could top the one that will allow Sprint to take over one-third of the retail space in each of the locations that it leases. At a hearing in U.S. Bankruptcy Court, Fournier said "We don't know exactly where we're going to end up." The court will formulate procedures for bidding on Radio Shack's assets on February 20th. A hearing for a final sale is penciled in for March 12th, although that can change.

Under protection from bankruptcy laws, Radio Shack can continue to operate. The company has a deal to sell as many as 2400 of its 4100 stores to its largest shareholder, Standard General, whose General Wireless subsidiary will be offering the retailing space to Sprint. Meanwhile, Radio Shack wants to close 1700 stores before the end of this month in order to save $8 million in rent. A hearing will be held in Bankruptcy Court on Monday at which time the retailer will seek permission to shutter those locations. 

Obviously, Sprint is hoping that no other bidder comes into the picture so that it can start selling "mobile devices across Sprint`s brand portfolio as well as Radio Shack products, services and accessories." Yesterday, Sprint CEO Marcelo Claure called Radio Shack's retail locations "incredible."

source: Reuters

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12 Comments

1. Daftama

Posts: 641; Member since: Nov 03, 2012

Be happy that Sprint getting and Sprint don't worry no else is coming in... Google should just buy them both out and done...

2. techloverNYC

Posts: 601; Member since: Nov 20, 2012

next electronic store to go out of business will be Gamestop.

3. johnbftl

Posts: 283; Member since: Jun 09, 2012

Best Buy is more likely. GameStop at least has a niche. Gaming. They also sell used games at a ridiculously high profit margin. So long as console gaming is popular, GameStop will exist.

4. quakan

Posts: 1419; Member since: Mar 02, 2011

Digital downloads will eventually kill GameStop too. They'll find a way to leverage consumers into choosing that over hard copies one day. It'll have to be after download speeds get much better though.

9. techloverNYC

Posts: 601; Member since: Nov 20, 2012

Don't best buy sell games too? Lately the gamestops around me seems to get desperate and are selling like used and new electronic such as ipad or ipods now.

5. mixedfish

Posts: 1569; Member since: Nov 17, 2013

Nope Gamestop is doing well for themselves, the next store will be Fry's.

10. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Gamestop will be sitting pretty until the console manufacturers decide to shut them out, and that will require them to transition solely to digital. Used game and system sales are still pretty common.

6. cripton805

Posts: 1485; Member since: Mar 18, 2012

Both Radioshack and Sprint are going to run themselves to the ground. Phones are Radioshacks biggest seller? How are they going to lease out a portion of their store and continue to make money? They are not. I'm pretty sure Sprint knows this and is going to ride them as long as they can to get subscribers. Then once they close its like nothing happened.

7. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Internet has and continues to be the slow killer of all retail...

11. sgtdisturbed47

Posts: 974; Member since: Feb 02, 2012

How is that? More purchases happen in-store than online, by a large margin. People still prefer to buy in-store, mostly because they get to see, feel, and sometimes demo items in the store before buying it right then and there, no shipping required. Also factor in the return process, as it's far easier to return or exchange an item in-store. Radio Shack isn't dead because people would rather buy capacitors, adapters, and remote-control helicopters online. They died because that's all people think of when they hear "Radio Shack".

8. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

I am sad to see radio shack go out of business. I like to invent stuff and bought Electronic and electrical equipment from them. I also bought some other nice gear from from them. this is a sad day for a lot of People especially in places where they do not have big Electronic stores in their neighborhood.

12. mike2959

Posts: 699; Member since: Oct 08, 2011

Sprint won't learn their lesson. Wimax, Virgin Mobile, Boost Mobile.. Billions wasted on Nascar sponsorship. Imagine if the $ spent on all of that, if they would of actually won some spectrum auctions , and also invested Early into LTE. To this very day the network in Northeast Ohio

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