Sprint is no savior; Radio Shack goes bankrupt again
by Alan Friedman / Mar 10, 2017, 11:32 AM
Almost exactly two-years after a bankruptcy court agreed to a plan that turned approximately 1,500 Radio Shack stores into co-branded locations with Sprint, the electronics retailer filed Chapter 11 once again. This allows the company to keep operating and buys it time to reorganize while giving it protection from lenders. 200 stores will close immediately, and Radio Shack's parent company, General Wireless Operations Inc., will take a look at the remaining 1,300 stores. General Wireless picked up the stores during the reorganization that took place in 2015.
Two years ago, Sprint CEO Marcel Claure praised the locations of Radio Shack stores, and said that Sprint needed the new retailing space since some customers were waiting hours to purchase a new handset at Sprint stores. The carrier took as much as one-third of the space in the co-branded locations.
But the hoped for surge in revenues never came, and earlier this week Sprint ended up paying Radio Shack $12 million to transfer leases on 115 stores to Sprint. While the nation's fourth largest carrier will probably turn those locations into stand-alone stores, the carrier started pulling merchandise out of the other co-branded locations, beating Wednesday's bankruptcy filing by General Wireless.
Once a thriving national chain selling electronics, batteries, tape recorders, computers and radios, Radio Shack has had a rough time competing in the digital world. Earlier attempts at selling a broad line of smartphones failed, and now has the plan to co-brand locations with Sprint. Still, the company filed Chapter 11, which means that Radio Shack plans on continuing operations in some form. Had it planned on liquidation, the company would have probably filed for Chapter 7.
source: Star-Telegram, NYPost
Posts: 193; Member since: Apr 05, 2016
Radioshack simply had way too much competition and not enough online presence. ecommerce is killing brick and mortar businesses, and it's honestly a sad thing to witness. Best buy is managing to do well once they finally started matching prices.
posted on Mar 10, 2017, 11:34 AM 6
Posts: 180; Member since: Jun 15, 2015
Exactly. With Amazon and other online retailers RadioShack won't survive. It definitely does not help that they're tied to Sprint, another failing company.
posted on Mar 10, 2017, 11:41 AM 7
Posts: 14605; Member since: Dec 19, 2008
sadly, they should have gotten smart and started selling through amazon and such. There's no need for so many brick and mortar stores. Keep any profitable ones open, shut the rest, and sell online. Not a hard concept.
posted on Mar 10, 2017, 2:13 PM 1
Posts: 10; Member since: Jan 19, 2017
omg just die already Radio Shack
posted on Mar 10, 2017, 11:38 AM 0
Posts: 1586; Member since: Aug 15, 2011
Why do you want store die? More store mean more competition, more choice, create job ...... better for all. Stop hate, be more thoughtful.
posted on Mar 10, 2017, 12:23 PM 2
Posts: 10; Member since: Jan 19, 2017
Because they are over-priced and almost no one shops there anymore. Why do you think they filed bankruptcy LOL. When was the last time Radio Shack ever had a deal better than anyone else? HOW ABOUT NEVER!
posted on Mar 10, 2017, 1:35 PM 1
Posts: 4359; Member since: Sep 01, 2012
On black Friday they did you can't beat a laptop cooling fan for 10$ besides other person is right, even if no one shops there guess what jobs are still being created so stop thinking like an elementary school student
posted on Mar 10, 2017, 1:49 PM 2
Posts: 14967; Member since: Sep 25, 2013
The reason Radio Shack is falling is honestly no fault of their own. Back in the day when people needed to buy cords and parts, they were the place to go. But all that stuff can be bought online for cheaper and is more convenient considering hwo Radio Shack locations are so spread out. But they did fail because they did evolve with the times. The audio stuff they sold were brand not many people buy. I mean Optimus is a cheap knockoff of what RCA and others had. What RadioShack could have done was continue to sell small electronics liek headphones from Beats, BOSE and similar. They shoudl have carried small home audio stuff like DVD/BLURAY players and small to medium sized TV's. They should have continued to sell Compaq/HP laptops and small desktops and they could have moved into selling cellphones and also offered smartphone repair for iPhone's and some Galaxy models like the Note and S. But they didn't evolve. No one wants to even buy the brand and a lot of people work for them. I remember for my Radio/TV shop class, we had to buy a radio kit from RS and build it up in class and make our own receiver with knobs. That was so cool. The RadioShack/Tandy TRS 80 and TRS 1000. Amazing how things have changed.
posted on Mar 10, 2017, 11:47 AM 2
Posts: 1586; Member since: Aug 15, 2011
Only partly agree with you is she didn't evolve faster enough. It is easy said then done when look back and know the outcome. When smartphone and internet come along, not only just RadioShack but all electronic stores around the world had hard time to adjusted, and most had gone in our distance memory. Remember the before smartphone come a long every electronic stores carry Standalone radio, GPS, MP3 player, wire, battery etc just name of few. Today, all that pretty much get replaced with one device, recharable battery, connect device to another device through Bluetooth or wifi, carry one device on the go. And from physical business standpoint they can't scrape out their inventory, to gamble on one device that has price tag $650, maybe customers don't need all that etc....... it is easy look back said could do this do that but not easy when don't know what ahead. In the capital world, once you short with cash, it is not easy to makeup. In short and general rule of thumb, I see biggest problem with all corporation company is one they get too large and profit get multi billion, investors getting more and more greed, want to grow at grown rate unrealistic. One top of that CEO and Director affair the to take risk, start play safe and fight for power among them self inner circle....... instead innovation or think outside the box.
posted on Mar 10, 2017, 1:36 PM 1
Posts: 276; Member since: Feb 03, 2016
Well... what did everyone expect would happen when Sprint took over. They couldn't even keep their #3 wireless spot, so what made people think that they could successfully keep the RadioShack part of the business going? Sprint is a slowly dying company as a whole and everything else it owns.
posted on Mar 10, 2017, 11:51 AM 2
Posts: 11; Member since: Mar 03, 2017
Radio shack had no chance against big name stores like best buy, Amazon, Walmart, fry's electronics. They didn't carry enough inventory and lack of advertising and sales killed it. I can't remember the last time I was in one but the lack of merchandise was depressing. They didn't carry anything I was looking for.
posted on Mar 10, 2017, 1:26 PM 2
Posts: 122; Member since: Oct 17, 2016
Times have changed with the advent of the internet. Being successful in local retail today means knowing your market. Everyone here talking about RS selling home audio/video equipment just don't understand business. RS did not have the buying power of Walmart and BestBuy. They can't compete. What they should have promoted and still can are the things that made them successful to start with, small electronic components. The stuff you can't find anywhere else locally but RS. No these aren't big ticket items so they are going to have to scale back stores. But they can still be successful.
posted on Mar 10, 2017, 5:25 PM 0
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