RadioShack sign (Photo : Reuters)
The electronics retailer RadioShack has signed a written promise to sell a maximum of 2,400 (1,500-2,400) stores to General Wireless. RadioShack can begin the process upon approval of the bankruptcy judge handling the case.
General Wireless is an affiliate of Standard General, a hedge fund. Standard General is RadioShack's biggest shareholder.
The filing includes RadioShack stores in the United States. However, it does not include the stores that are owned by franchises, nor its subsidiaries located abroad.
A total of 138 RadioShack stores in Texas alone will be closing, due to the Chapter 11 Bankruptcy, and this includes RadioShacks in cities such as Ennis and Palestine, according to the Weatherford Democrat.
General Wireless has given an agreement, in principle, with Sprint to create "mobility stores" within a maximum of 1,750 of the stores it is purchasing from RadioShack. Sprint would secure about one-third of all of RadioShack's stores, which generally have outstanding locations.
This situation would greatly reduce the present average wait time of one to two hours, for Sprint customers to purchase mobile phones at Sprint's existing stores. Marcelo Claure, the chief executive of Sprint, has judged this timeframe as "not acceptable."
The goal of the sales of the stores is part of its larger plan to increase the profits of RadioShack's stakeholders as much as possible. They have a stake in the company's nearly 4,000 company-owned branches.
The RadioShack stores not sold to General Wireless will be closed, via a motion filed with the bankruptcy court. Those stores will likely sell any existing inventory they currently have. The announcement of RadioShack's bankruptcy has not surprised financial experts. That is because the company experienced nearly four consecutive years of unprofitability, according to Reuters,
