While it looked like RadioShack was going to join the American business history books, a bankruptcy judge has approved hedge fund Standard General LP’s efforts to buy the brand. Through a partnership with Sprint Corp., Standard General will save over 1,700 stores and 7,500 jobs.
In February, RadioShack filed for Chapter 11 bankruptcy protection after years of declining sales and an inability to keep up with the times. The company then started going-out-of-business sales in almost 200 stores around the country.
On Tuesday, Judge Brendan Shannon approved Standard General’s take-over plan.. The firm hopes that the partnership with Sprint will help draw in consumers looking to buy smartphones, as RadioShack failed to do that by itself.
According to NBC News, Sprint revealed that it plans to keep the RadioShack logo on stores, but it will be much smaller and under a larger Sprint logo.
The WSJ noted that Standard General could have to come up with a new name for the new RadioShack, unless it decides to pay up lender Salus Capital Partners. Salus had also bid on RadioShack and has first claim on RadioShack intellectual property. Standard General just has temporary rights to use the name to establish the business.
image via Radioshack.com