RadioShack Files for Bankruptcy
- Author: Douglas Reid Mar 10, 2017,
Mar 10, 2017, 0:43
Locations in Neenah and on Calumet Street in Appleton closed in 2015 when the electronics retailer filed for bankruptcy the first time. The company plans to close 200 of its 1,500 stores nationwide at some point in the bankruptcy process.
With RadioShack filing for Chapter 11 bankruptcy and closing 1,500 stores, it's likely Staten Island's two Radio Shacks are on the hit list, according to a Radio Shack employee. "Over the same time, we integrated FedEx pickup/drop-off into 140 RadioShack locations, delivered to customers over 700,000 Hulu login pins and sold more than a million RadioShack private brand headphones and speakers".
"The bottom line is that RadioShack's Chapter 11 filing is not material to Sprint's business and we have an agreement in place to convert several hundred RadioShack stores to Sprint company owned retail stores", a Sprint spokeswoman said in an email.
The exterior of a RadioShack store is seen in New York February 5, 2015.
But several problems including a partnership with Sprint wireless that didn't go as well as expected contributed to the continued struggle, the company said.
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But, in the years since RadioShack has emerged from bankruptcy, both Sprint and RadioShack have been challenged.
"The Sprint relationship did not yield the benefits" RadioShack was anticipating, it said.
"It became apparent to the debtors that not only would they not receive the originally projected cash commissions in 2016, but they likely would not receive commissions from Sprint, even at a substantially reduced amount until 2018", Rogers said. The next tier of 365 stores will close by the end of March, and some of these store leases may be transferred to Sprint.
The shift away from selling other retailers' products to its own has helped it reduce operating expenses and increase gross profit.