Report: Amazon, Sprint eye RadioShack stores

Fort Worth, Texas – As the New York Stock Exchange delists trading of its shares, beleaguered consumer electronics retailer RadioShack Corp. reportedly has at least two suitors interested in buying some of its stores. According to Bloomberg, both Amazon.com Inc. and Sprint Corp. are in discussions with RadioShack about possibly acquiring some stores, with RadioShack shuttering whatever stores were left.



In the possible Amazon deal, the e-commerce giant would move from piloting pop-ups to purchasing some RadioShack stores for use in selling its hardware products and/or as pickup-dropoff locations for online consumer purchases. This would give Amazon more of a footing in the consumer device marketplace against chief rival Apple. Amazon would purchase the stores following a RadioShack bankruptcy, which many sources indicate is imminent.



In addition, RadioShack has been in discussions with Sprint to sell 1,300 to 2,000 of its 4,300 U.S. stores. The deal would possibly rebrand the stores as Sprint stores, or have them continue in some co-branded fashion. Sprint executives have made public comments about expanding store count this year. Chinese investment firm Sanpower Group, which purchased the bankrupt Brookstone specialty chain in June 2013, is also reportedly considering a bid for at least some RadioShack assets.



Earlier this week, reports indicated that hedge fund Standard General LP is arranging to act as the lead “stalking horse” bidder for RadioShack. Standard General, which is RadioShack’s largest shareholder and has already provided financing that allowed RadioShack to operate through 2014, would serve as lead bidder in a court-supervised bankruptcy auction.



The hedge fund may place a bid to buy RadioShack with fewer than its current roster of 4,300 stores. RadioShack is also currently negotiating the terms of a $500 million “debtor-in-possession” loan from shareholder Salus Capital Partners that would let the company operate during Chapter 11 restructuring. That loan may include or have included provisions for RadioShack to sell up to 1,000 of its U.S. stores.



In a December 2014 SEC filing, RadioShack warned it may be forced into bankruptcy and said it only had $62.6 million on hand as of Nov. 1, 2014. The company has posted losses in 11 straight quarters.