RadioShack files for Chapter 11 bankruptcy

RadioShack, the retailer once known for having every electronics hobbyist’s needs, filed for Chapter 11 bankruptcy protection on Thursday. The retailer has sold off its remaining stores to the hedge fund Standard General.

Standard General will acquire 2,400 RadioShack stores and 1,750 of them will be operated by Sprint Corp. in an agreement between Standard General and the wireless phone provider, RadioShack said.

According to The Wall Street Journal, RadioShack filed for Chapter 11 in the U.S. Bankruptcy Court in Delaware. It is looking for court approval to have liquidation firm Hilco Merchant Resources to help close the nearly 1,600 stories that Standard General isn’t acquiring.

“These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders,” RadioShack CEO Joe Magnacca said in a statement.

RadioShack has experienced a sharp decline in sales in the 21st Century, as online retailers sell electronics equipment at cheaper prices. The company tried to shift to cell phone sales, but it didn’t help much. It could not figure out how to survive in a world with smartphones.

image via Radioshack.com

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