Report: RadioShack cleared to sell 1,100 store leases

RadioShack has received court approval for its plan to sell the leases to more than 1,100 stores that it will close by the end of February, according to Reuters.

U.S. bankruptcy Judge Brendan Shannon in Wilmington, Del., gave his approval to the bidding and auction process for the leases, which has been under way for weeks."I don't think I've ever signed an order with bids due in two hours," Shannon said, referring to the noon deadline for bids. An auction will be held next week for leases that draw multiple bids.

Radioshack filed for Chapter 11 bankruptcy this month. Since then, the company has been moving quickly to close a number of stores so it wouldn’t get stuck paying for March’s rent for these stores.

Next, Radioshack will be looking for court approval to sell the leases of an additional 2,400 stores. The hedge fund Standard General plans to act as an initial bidder for the locations that remain open. They also plan to bring in Sprint as a partner to operate those stores. Selling the leases of 1,100 stores would mean Radioshack is closing a little under a quarter of the stores they still have open.

The company plans to abandon even more stores in March and put those leases up for sale in the next month.

Read more here.