Tuesday, 25 April, 2017

Bay City RadioShack to close as retailer files for bankruptcy again

The exterior of a Radio Shack store is seen in New York The exterior of a Radio Shack store is seen in New York Thomson Reuters
Juana Turner | 10 March, 2017, 00:25

"Entire store on sale" and "Everything must go" signs now cover the storefront windows.

The Company, which was formed to purchase and operate certain assets of electronics retailer RS Legacy (p/k/a RadioShack), is represented by David M. Fournier of Pepper Hamilton.

RadioShack announced on Wednesday that the company filed voluntary petitions under Chapter 11 in the United States Bankruptcy Court for the District of Delaware.

The company said it's now exploring "all available strategic alternatives" to maximize value for creditors, including the possibility of keeping stores open on an ongoing basis. "We greatly appreciate their hard work and dedication", he added. The 1743 retail outlets that survived RadioShack's 2015 bankruptcy were acquired by General Wireless Inc, an affiliate of Standard General LP, which, at the time, received US Bankruptcy Court approval to acquire the inventory and assume the leases of the RadioShack stores.

In a statement, RadioShack president Dene Rogers said the company had improved its services and numbers in several sales areas since its restructuring, but couldn't avoid larger strategic hurdles.

The Fort Worth Star-Telegram wrote Monday that Sprint had removed its wireless product displays from some area RadioShack stores there.

The shift away from selling other retailers' products to its own has helped it reduce operating expenses and increase gross profit. "The Company and its advisors are now exploring all available strategic alternatives to maximize value for creditors, including the possibility of keeping stores open on an ongoing basis". A RadioShack spokesperson wasn't immediately available for comment.

To turn its fortunes around, RadioShack teamed up with Sprint to create mini-stores within more than 1,000 locations.

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