Report: RadioShack may sell store leases to Sprint

Fort Worth, Texas – RadioShack Corp. is reportedly negotiating with Sprint to sell some of its store leases to the wireless carrier. According to Bloomberg, Sprint executives said the company is planning to expand its store count through acquisitions at an investor conference last week.



Reports indicate that RadioShack is currently in talks with several private equity firms about possibly buying its assets out of bankruptcy. The retailer may also seek reduction and restructuring of its debt in bankruptcy court. RadioShack stated in a December SEC filing that it may have to file for bankruptcy if it is unable to raise funds or receive permission from lenders to close underperforming stores. The company has posted losses in 11 straight quarters and had about $62 million in cash on hand as of Nov. 1.



Potential relief could come in the form of $500 million from Salus Capital Partners, who has offered to provide a kind of debtor-in-possession loan used by companies to fund operations in bankruptcy. Although the offer reportedly expired Jan. 15, it also include or have included provisions for RadioShack to sell up to 1,000 of its roughly 4,000 U.S. stores.