RadioShack files for bankruptcy, sell up to 2,400 stores
To effectuate this transaction and an orderly sale of the Company's remaining assets, RadioShack and certain of its U.S. subsidiaries have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
As part of this process, other parties will have an opportunity to submit offers for RadioShack's assets in a court-approved process. The sale agreement is subject to court approval and other conditions. RadioShack's foreign subsidiaries and its franchisee-owned stores are not included in the filing.
General Wireless, the entity formed to acquire the stores under the asset purchase agreement, has agreed in principle on terms with Sprint to establish a new dedicated mobility "store within a store" retail presence in up to 1,750 of the acquired stores. This agreement-in-principle is subject to negotiation of definitive documentation as well as court approval.
In addition, the Company has filed a motion with the Court to proceed with the closure of the remaining company-owned stores under an agreement with Hilco Merchant Resources. A list of the stores slated for closure will be posted in the near future on the restructuring information section of the company's web site at www.radioshackcorporation.com. Stores that are closing are expected to sell remaining inventory.
RadioShack currently has approximately 4,000 company-owned stores in the U.S. Its more than 1,000 dealer franchise stores in 25 countries, the stores operated by its Mexican subsidiary, and its Asia operations are not included in the Chapter 11 filing or the agreements announced today. ■