RadioShack declares Bankruptcy

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Calvin

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Nearly a century after it opened its first store and sent out its first catalog, RadioShack (RSHC) declared bankruptcy on Thursday.

It has struck a deal to sell up to 2,400 of its approximately 4,000 stores and wireless company Sprint (S) will create a "store within a store" in up to 1,750 of those.

RadioShack said that its remaining stores are expected to close.

The company's franchise locations, as well as stores in Mexico and Asia, are not included in the deal.

But RadioShack is not completely going away. Customers will still be able to purchase RadioShack products, services and accessories at the approximately 1,750 stores where Sprint will open shop. In fact, Sprint will occupy just one third of those locations, where it will sell devices and plans. The stores will be "co-branded," according to a Sprint spokeswoman.

The bankruptcy announcement is no surprise. The New York Stock Exchange suspended trading of its shares on Monday. And RadioShack (RSHC)workers have told CNNMoney that some locations have already been converted to clearance stores.

It's been a long, slow decline for RadioShack. Losses have been mounting, and in its latest quarter sales plunged 16% from a year ago.

Cash-strapped, RadioShack found itself saddled with more than 5,000 stores at the beginning of last year, many of which it couldn't afford to keep open.

Related: 94 years of hits and misses at RadioShack. But closing stores is expensive, due to the cost of severance, liquidating merchandise and paying penalties to get out of leases.

And RadioShack has been so low on cash it couldn't afford to close enough of the stores strangling its business.

Last March, the company announced a plan to close about 1,100 stores, but it was only able to close 175 stores through the end of October. By year's end it was battling with its lenders to get the green light to close more.

Once upon a time, RadioShack bragged about its vast retail network, saying that 90% of the U.S. population lived or worked within a few minutes of a RadioShack location.

Related: RadioShack employees: Tales from the walking dead

But with online shopping, those brick-and-mortar stores became dead weight.

RadioShack goes back to 1921, when it opened a store and mail-order operation in Boston to serve the needs of radio officers aboard ships. It was bought in 1963 by Tandy Corporation, a retailer that started as a supplier of leather parts to shoe repair shops.

For a time RadioShack prospered from Americans' growing love affair with technology. It introduced one of the first mass-market personal computers, the TRS-80, in 1977, and one of the first laptops, the Model 100, in 1983. It also was an early seller of both cell phones and satellite television systems.
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RadioShack declares bankruptcy
 
I just went to Radioshack to bought a 9v plug and it got sale $0.75 for just 5 packs in last week.
 
Not surprised, since I've seen a lot disappearing over the last few years. But I always find it disappointing when this happens, even if I don't shop there all that often.
 
I loved the place for years. I could always go and get stuff for bread board projects when I ran out of something at the last minute. A couple years ago they just pulled all the stuff I went there for and stopped shopping with them.

I never spent more than $10 at a time with them.
 
Used to shop there years ago...and it used to be a popular store....not surprised at all about the bankruptcy tho'....Best Buy has taken over where I live.
 
When I was a kid/teen it was one of my favorite stores. We got all kinds of stuff there for our projects. It's too bad they didn't keep up with marketing trends.
 
It's been on a downward spiral for years, the end was inevitable.
 
Reba said:
When I was a kid/teen it was one of my favorite stores. We got all kinds of stuff there for our projects. It's too bad they didn't keep up with marketing trends.
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same here. pretty sad to see it go because it's basically the only place to go for DIY stuff.
 
It was coolest store in late 80s. Now, it sucks. They fail me...
 
They went under before Circuit City?
Well that is a surprise! It's a ghost town in both stores though so not too shocking.
 
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Wikimedia Commons On February 5, RadioShack filed for bankruptcy.
As part of its bankruptcy proceedings, the company is going to close a number of its stores, while others will survive as part of an agreement with Sprint to create a "store within a store."

In court documents posted by RadioShack, the company and its creditors detailed plans for which RadioShack stores will close and when.

In all, the company plans to close at least 1,784 stores by March 31, with the closures coming in three waves, or tranches.

The first tranche of closures includes 162 stores and is set to be complete by February 17.

The second tranche includes 986 stores set to be closed by February 28.

And the third tranche includes 636 stores slated to be closed by March 31.

There's some language in a court document here that says with notice by February 18, certain of the second tranche stores can have their closing date extended to the March 31 deadline.

But either way: 1,784 RadioShack's will be gone in less than two months.
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Here are the 1,784 RadioShack stores that will close by March 31

list of closures
 
Yeah , I was wondering how the one in my city was staying open . A drug store just shut down in the same location , both store are right to one another , so we could end up having two empty stores. I think this is also a ripple effect in some places , it's in my city . There is a Shaw's there and they're doing very poorly , people shop at Markets Basket which is very close to Shaw's and the drug next to MB is always busy . People like to do all their errands at one time and a popular grocery store is a huge ripple effect for the other stores. Plus the internet is hurting a lot stores .
 
I used to go Radio Shack when I need extension wires for TV+stereo system, etc... but it was sad to let it go. Amazon is next if I need electronic wires, etc....and it can not be received on the SAME day.
 
authentic said:
I used to go Radio Shack when I need extension wires for TV+stereo system, etc... but it was sad to let it go. Amazon is next if I need electronic wires, etc....and it can not be received on the SAME day.
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The Radio Shack in my city is so poor the punks that work there were shooting green lasers at people cars and did it to me! I was not able to prove but I went into the store and there where 2 guys working there and one guy refused to look me in the face he kept his back to me. So I will not be sorry to the store go.
 
authentic said:
I used to go Radio Shack when I need extension wires for TV+stereo system, etc... but it was sad to let it go. Amazon is next if I need electronic wires, etc....and it can not be received on the SAME day.
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If you order a lot of stuffs and download instant video from Amazon, I recommend that you join Prime membership (in order to get free two-day delivery and unlimited streaming video). Up to you.
 
whatdidyousay! said:
The Radio Shack in my city is so poor the punks that work there were shooting green lasers at people cars and did it to me! I was not able to prove but I went into the store and there where 2 guys working there and one guy refused to look me in the face he kept his back to me. So I will not be sorry to the store go.
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If there was employee at your local food store is giving you a bad attitude, so that means you will never go back to that local food store? Not everyone are the same. Simple, report it to manager, and have manager ASS-WHOOPING at that employee.
 
authentic said:
If there was employee at your local food store is giving you a bad attitude, so that means you will never go back to that local food store? Not everyone are the same. Simple, report it to manager, and have manager ASS-WHOOPING at that employee.
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I was driving my car in the parking lot when one of the guys was trying shoot the laser right into my mirror so it would get into my eyes . I could of been hurt . Did you read my post , there was no way I could prove it so how could I had reported it to anyone ??? The green ray was coming right from RadioShack window . The store is over price and they have nothing I want to buy so I will not miss it.
 
whatdidyousay! said:
I was driving my car in the parking lot when one of the guys was trying shoot the laser right into my mirror so it would get into my eyes . I could of been hurt . Did you read my post , there was no way I could prove it so how could I had reported it to anyone ??? The green ray was coming right from RadioShack window . The store is over price and they have nothing I want to buy so I will not miss it.
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If you cared about anyone else who might be injured, you could easily have reported your suspicions to management.
 
Back then in the 90's, RadioShack had a phone flasher for TTY and they also had bed "shaker" alarm clock. Sad to see this store go it was an historic icon of the time (since 1921). It survived the Great Depression, but technology (internet) today and competitors such as Amazon and Best Buy hurts the smaller business like this.
 
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