Sprint to buy the leases on some Radio Shack stores?

Sprint to buy the leases on some Radio Shack stores?
A source who has inside knowledge of the transaction, says that Radio Shack will sell leases on some of its stores to Sprint. The goal for the electronics retailer is to come out of bankruptcy a leaner company with a better chance of turning a profit. The company is expected to file for Chapter 11 as soon as the first week in February.

Under Chapter 11, the company remains in business, protected from creditors while working out a reorganization plan acceptable to the court. Debt holders would end up with paper worth pennies on the dollar, and stock holders could end up wiped out. The company has reported 11 consecutive quarters of losses and is almost out of cash.

Sprint CEO Marcelo Claure told investors at a Citigroup conference last week that the carrier would be adding more retail locations. Meanwhile, Radio Shack is looking to reduce the number of stores it runs from the current 4000 to 2000 or 3000 upon exiting bankruptcy. Sprint has had problems of its own, and will soon be leapfrogged by T-Mobile. The latter will become the nation's third largest carrier while Sprint will drop to number four.

source: Bloomberg

FEATURED VIDEO

7 Comments

1. reckless562

Posts: 1153; Member since: Sep 09, 2013

crazy

2. JOHNNY8573

Posts: 48; Member since: Nov 11, 2013

how is radio shack even around anymore....the only time i even go there is for a watch battery

3. DonkeySauce

Posts: 194; Member since: Dec 03, 2011

So, where does the Radio Shack/Sprint connection come in to play? The headline is speculating that Sprint may buy the leases of RadioShack stores based on nothing but the fact that one is shrinking and one is growing?

5. TheRequiem

Posts: 245; Member since: Mar 23, 2012

They'll be transitioned into Sprint stores and the Radio Shack Branding will dissappear. The problem with Radio Shack has been ending the leases of several hundred stores. Sprint will be able to pick these stores up as a bargain and increase their presence significantly in area's where Sprint stores are not available.

4. TheRequiem

Posts: 245; Member since: Mar 23, 2012

"Sprint has had problems of its own, and will soon be leapfrogged by T-Mobile. The latter will become the nation's third largest carrier while Sprint will drop to number four." - I'm going to remember this Phone Arena so I can laugh at you until the website dissappears. Sprint's Marcelo Claure is not sitting back on his drastic sales measures and treasure trove of spectrum. They just added a million customer's, so really, this comment is invalid. They aren't dropping anything, In fact, I'd be surprised if they didn't keep a similar momentum along the likes of T-Mobile for several quarters. The market is being significantly disrupted, get back in the loop.

6. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Per the latest phone arena report on Sprint's quarterly earningshttp://www.phonearena.com/news/Preliminary-results-for-Sprints-third-quarter-show-30000-net-additions-to-postpaid-accounts_id64537 of those million new customers, only 30k were Postpaid, rest were additions to prepaid or wholesale mvno.

7. corporateJP

Posts: 2458; Member since: Nov 28, 2009

One dying op jumps into another dying op's casket...is there a punchline here?

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.