Report: RadioShack to auction 2,000 stores in March; GameStop bids

Fort Worth, Texas – RadioShack Corp. will reportedly auction the leases of 2,000 stores in March, while GameStop has entered the picture as a bidder. According to Reuters, the bankrupt retailer received court approval to hold the auction on March 17 with Standard General making an initial “stalking horse” bid of $200 million and will move the date back to March 23 if more bidders emerge.



Currently, only Standard General has bid on the 2,000 stores that will go up for auction next month. However, the Spring Communications AT&T mobile phone affiliate of GameStop was among bidders on 205 of the 1,100 abandoned store leases which are being auctioned this month.



Standard General’s $200 million bid for the 2,000 stores being auctioned next month includes $75 million in cash, $55 million RadioShack owes the company in loan payments, and $70 million in credit from other hedge funds.



RadioShack will auction its name and intellectual property separately from its stores, and so far Standard General has bid $20 million. RadioShack also received bankruptcy court approval to borrow up to $285 million to stay open while it is auctioning off its stores and other assets.