The final scene in the RadioShack saga is ready to be played. It was reported on Monday that RadioShack is finally being wound up for good. In a Bankruptcy Deal Sprint would take over half of the stores and close the rest. The final terms and the extent of negotiation could change, but the end game is finally here.
RadioShack lawyers say that says the bankrupt electronics chain will be amenable to all kinds of bids for its assets, including from liquidators, although any transaction would require court approval.
RadioShack had applied for Chapter 11 protection and is in the process of selling 2400 stores of its total stores of 4100 stores to its largest shareholder and affiliate of the hedge fund, Standard General. Wireless company Sprint Corp. would operate within those stores as a part of the deal. However RadioShack lawyer David Fournier said that any better deal is always welcome.
Fournier said Friday at a hearing in U.S. Bankruptcy Court in Delaware, “We don’t know exactly where we’re going to end up,”
RadioShack which had posted 11 straight quarterly losses after its failure to find a place among mobile phone buyers, is desperately trying to avoid liquidation. Under the present US bankruptcy laws, companies under the ambit of chapter 11 are given a grace period of 210 days to decide whether to accept or reject leases. This makes it very difficult for retailers to device turnaround plans.
The court has set a date, February 20 for finalizing procedures and a final sale hearing scheduled for March 12th. RadioShack in court papers has promised to expedite the process due to the extremely rigid timeline which has been agreed upon in the Standard General deal.
Radio Shack also announced its intention to cease operating 1700 stores and hopes to complete the process before the end of this month to avoid paying $7 million as March rent.cialis liquid