Retail

RadioShack Closes 1,000 Stores

Radio Shack closure

RadioShack closed 1,000 stores over the Memorial Day weekend, leaving the chain with only 70 company-owned stores and 500 dealer stores in operation across the U.S.

According to Chain Store Age, the company announced its liquidation sales to 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!”

RadioShack 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 around 200 stores and evaluate the remaining 1,300 locations.

General Wireless Operations, Inc. acquired RadioShack in April 2015 with a plan to co-brand the bulk of the stores with wireless carrier Sprint. In the filing by General Wireless, 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 percent, while at the same time saw gross profit dollars increase 8 percent. 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.”

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