RadioShack shuts down 1,000 stores

RadioShack Corp. has entered into the newest chapter of its financial saga.



The company, which recently filed for bankruptcy protection, closed 1,000 stores over the Memorial Day weekend. This move leaves the chain with a mere 70 company-owned stores and 500 dealer stores in operation across the U.S., according to Fortune.



RadioShack quietly announced its liquidation sales to loyal shoppers via social media, including Twitter. Among the tweets were “Stop by your local #radioshack and make an offer on our retail fixtures! Talk to a store manager for pricing details.” Another was “Everything must go! Last minute deals on all of our supplies and equipment are available at select locations!”



The electronics chain filed for Chapter 11 bankruptcy protection in March, its second filing in just over two years. At that time, the 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. The company had a plan to turnaround the struggling company by co-branding the bulk of the stores with wireless carrier Sprint. 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.



“Since emerging from bankruptcy two years ago as a privately owned company, our team has made progress in stabilizing operations and achieving profitability in the retail business, while our partner Sprint managed the mobility business,” said Dene Rogers, RadioShack’s president and CEO.



“In 2016, we 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,” he added. “We will continue to work with our advisors and stakeholders to preserve as many jobs as possible while maximizing value for our creditors.”