The well known and even iconic electronics chain Radio Shack somewhat unsurprisingly filed for Bankruptcy Feb. 5, 2015 in a move to liquidate and restructure the company and save it from a fate like that of Circuit City and Boarders. The company, which hasn’t turned a profit since 2011, has cut a deal with Sprint to sell the wireless corporation up to 2,400 stores.
Radio Shack started out over 90 years ago as a mail-order business catering to the needs of radio officers serving aboard ships. In 1963 the business was acquired by the Tandy Corporation and soon after became the electronics retailer we recognize today. On it’s website Radio Shack states that it’s combination approach of neighborhood merchant and international retailer has allowed it to maintain a position of an enduring American brand.
Endurance has not been the company’s strength as of late with consistently declining profits, the sell off of 175 stores last year, and now a bankruptcy filling. Attempts were made to remake the store for our digital age but it seems to have failed to spark interest and remained that place you go for various cords and other electronic odds and ends that the average person needs on an average basis of hardly ever. Anyone who has visited their neighborhood analog electronics dealer in the past several years can tell you that business is infrequent at best. With their signal fading out Radio Shack even made what seems like a last ditch effort last year to ramp up business with a sort of bittersweet Super Bowl ad. Unfortunately for Radio Shack the ’80s and business as it has been is over.
Now the company is entering a deal with Sprint that will see up to 1,750 stores reconfigured to operate conjointly with the Sprint business model as stores-within-stores. The rest of the companies assets are to be cleared out and sold. They also recently posted a list of potential closures to specific stores.
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