RadioShack may be down, but don’t count it out just yet.
Consumers may have seen signs posted in RadioShack stores announcing store closings and clearance sales while walking through malls or driving through their cities. Everything must go.
In its latest news, though, the electronics retailer may continue to exist through a new lifeline thrown by an investment firm.
After a tumultuous few years and the closing of 1,000 RadioShack storefronts, it appears the heartbeat of the electronics retailer is faint but still exists. The company’s intellectual property is set to be purchased by Kensington Capital Holdings, a family investment office located just outside of the Boston area, for $15 million.
Making the acquisition more unique is that the acquiring company already has a checkered past with the retail giant.
It turns out RadioShack was already indebted to Kensington Capital, which issued an approximately $23 million loan to the electronics retailer about two years back. Following this deal, it partnered RadioShack with Sprint Corporation to co-brand 1,400 stores. In its current contract, details for the retailers’ intellectual property include Kensington Capital licensing RadioShack to General Wireless.
Neither party is commenting on the deal at this time, and it is unknown if any additional elements of RadioShack will be utilized moving forward. The capacity in which RadioShack’s intellectual property will be used is also still up in the air.
Given the nature of eCommerce shifting from brick-and-mortar sales over to the online arena, it is possible that we may see RadioShack and its intellectual property close for good in the next few years.