Business
RadioShack Gets Green Light to Co-Brand 1,700 Stores with Sprint
This March 25, 2014 photo shows a RadioShack store sign in Philadelphia. (AP Photo/Matt Rourke)
(Digital Trends) – When RadioShack filed for bankruptcy earlier this year, it looked to some like it was well and truly over for the 94-year-old consumer electronics retail business.
However, a deal green-lighted by a Delaware bankruptcy court Tuesday shows there’s life in the ol’ company yet, albeit in a transformed state.
The deal, which involves the sale of 1,740 RadioShack stores to the Standard General hedge fund, will see the outlets co-brand with Sprint stores. The telecoms firm is expected to occupy around 30 percent of the space in each location, where it’ll sell mobile devices and wireless plans.
RadioShack, which was desperate to secure the deal by Wednesday to save it paying another round of rent on its stores, was running 4,000 retail locations up until its bankruptcy filing in February. Although the retailer’s troubles have led to the closure of more than half of its stores, moving in with Sprint means around 7,500 RadioShack jobs will be saved out of a total of 27,000.
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