Retail

RadioShack Looks For A Comeback With HobbyTown Partnership

RadioShack is looking to make a comeback through a new partnership with HobbyTown.

After emerging from bankruptcy, the 97-year-old company, now owned by General Wireless Operations, is installing new RadioShack Express “stores” inside 100 HobbyTown locations, the companies announced Thursday (July 26).

RadioShack recently refocused its efforts on both its eCommerce platform and more than 400 dealer locations. Last week, it announced its partnership with HobbyTown, which will bring RadioShack branded electronics to over 60 HobbyTown franchise store locations nationwide.

“We are excited about the HobbyTown partnership, as it will allow us to re-engage and directly serve our core hobby and DIY communities,” Steve Moroneso, chief executive officer of General Wireless, said in a press release.

The HobbyTown partnership will bring RadioShack to more suburban markets.

“This will expand the RadioShack footprint quickly and enhance the product selection and services offered at HobbyTown locations,” said HobbyTown’s president, Bob Wilke.

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 acquired RadioShack in April 2015. In the filing, 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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