RadioShack files Chapter 11 — again

RadioShack Corp. filed for Chapter 11 bankruptcy protection, its second filing in just over two years.



The electronics retailer said it would close approximately 200 stores, and evaluate options on the remaining 1,300 locations.



General Wireless Operations Inc. acquired the then-bankrupt RadioShack in April 2015, with a plan to turnaround the struggling company by co-branding the bulk of the stores with wireless carrier Sprint.



Currently, RadioShack has over 1,500 company-owned stores, including 1,200 Sprint Stores at RadioShack, and 425 independent dealers located nationwide. According to Bloomberg, Sprint is working with General Wireless to convert several hundred locations into Sprint stores.



In the filing by General Wireless, which is an affiliate of hedge fund Standard General, RadioShack listed assets and liabilities in the range of $100 million to $500 million.



In a statement, RadioShack president and CEO Dene Rogers said that since emerging from bankruptcy two years ago as a privately owned company, the company has made progress in stabilizing operations and achieving profitability in the retail business, while partner Sprint managed the mobility business. In 2016, it reduced operating expenses by 23%, while at the same time saw gross profit dollars increase 8%.



“However, for a number of reasons, most notably the surprisingly poor performance of mobility sales, especially over recent months, we have concluded that the Chapter 11 process represents the best path forward for the company,” Rogers said.