("RadioShack" or "the Company"), doing business as RadioShack, the neighborhood electronics convenience store, today announced that the Company filed voluntary petitions under Chapter 11 in the United States Bankruptcy Court for the District of DE ("the Court").
General Wireless Operations, the successor to RadioShack, filed for Chapter 11 protection, as expected.
The reorganization plan calls for the shutting of 187 stores by Monday; the sale to Sprint or closure of another 365 stores by March 31; and an evaluation of the remaining 1,000 locations, with an option to liquidate.
"Best Buy has found its way through the wreckage and stabilized its business, but hhgregg, a smaller furniture and electronics chain, filed for bankruptcy on Monday and said it would close one third of its stores", Wahba continued.
The Bay City RadioShack, located at 4073 North Euclid Avenue, will be closing as a result of the company's Chapter 11 bankruptcy. The newspaper said Sprint products were pulled out of Dallas-Fort Worth suburban RadioShack stores in Bedford and Arlington. Sprint and RadioShack signs shared the front of stores as the Overland Park-based wireless carrier hoped the quick and low-priced expansion of its retail footprint would help attract subscribers.
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.
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The No. 4 and 5 spots were taken by The LEGO Batman Movie ($11.6 million) and Open Road's drama Before I Fall ($4.9 million). The film adaptation of the religious novel The Shack had a moderate start, opening in third place with just $16 million.
But, in the years since RadioShack has emerged from bankruptcy, both Sprint and RadioShack have been challenged.
To turn its fortunes around, RadioShack teamed up with Sprint to create mini-stores within more than 1,000 locations.
RadioShack is owned by General Wireless Operations Inc.
Sprint said it will retain part of the stores for itself.
The influx of cheaper copycat consumer products manufactured overseas has also hurt the business.
The announcement comes even though RadioShack said it trimmed expenses by 23 percent previous year while growing profit 8 percent, according to a news release Wednesday.