RadioShack files for Chapter 11

It's official: The long-struggling RadioShack has filed for Chapter 11 bankruptcy protection. The 94-year-old retailer made its filing in U.S. Bankruptcy Court in Delaware, listing assets of $1.2 billion and total debt of $1.3 billion.



In the still developing story, the company on late Thursday afternoon said it has reached an agreement with hedge fund Standard General for the firm to purchase up to 2,400 of its stores.



The plans calls for an asset purchase agreement with Standard General and Sprint to use a "store-in-store" model that would allow the RadioShack name to exist in as many as 1,750 of the acquired shops, CNBC reported. Other underperforming locations would shutter. The branding on the surviving stores would primarily feature Sprint, according to a Sprint statement.



“We’ve proven that our products and new offers drive traffic to stores, and this agreement would allow Sprint to grow branded distribution quickly and cost-effectively in prime locations,” said Sprint CEO Marcelo Claure. “Sprint and RadioShack expect to benefit from operational efficiencies and by cross-marketing to each other’s customers.”