RadioShack files bankruptcy again; will close about 200 stores
10 March, 2017, 00:39 | Author: Archie Newman
RadioShack has filed for bankruptcy protection for a second time and will begin closing down a portion, but not all, of its retail stores.
The electronics chain now operates 10 stores in Western Mass., and one store in Worcester and over 30 in the eastern part of the state.
The store's location in Bay City at 4073 North Euclid Avenue is set to close, said Anthony Johnson, the manager of that location.
In RadioShack's first bankruptcy case, General Wireless, formed through the partnership of Sprint and NY hedge fund Standard General, bought the debtor's assets out of Chapter 11 in summer 2015.
RadioShack.com, stores and dealer locations across the country are still now open for business and serving customers.
The Texas-based electronics retailer filed its petition in bankruptcy court in DE on Wednesday.
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RadioShack was once the eighth-largest consumer electronics dealer, with more than 5,000 stores in the USA, but by 2014 it was losing $200 million annually in the mobility business alone.
Sprint said that it has already reached an agreement with RadioShack to convert several hundred stores into Sprint-owned stores, and that it will be able to provide jobs at other locations for any Sprint employees working at a store that closes.
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.
The chain retailer was founded in 1922, and since the 2015 bankruptcy has been operating as a private company.
In its filing, General Wireless listed assets and liabilities in the range of $100 million to $500 million.
The Northland Avenue RadioShack now has "entire store on sale" and "all sales final" signs posted around the store.
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