RadioShack isn’t doing so well. The now-niche electronics company is reportedly on its way to bankruptcy hearings, and may look to sell of some of their remaining locations. The bankruptcy hearing could com as early as next month, those familiar with the matter say. A second source is cited as saying RadioShack has already reached out to lenders who can “help fund its operation” during the bankruptcy process. Even with help through the restructuring period, things don’t look good for RadioShack.
The company is also said to be in talks with a private-equity firm to buy their assets out of bankruptcy.
Last year, RadioShack announced they’d be closing down 1,100 stores. Those plans were quickly tempered as lenders cried foul, causing RadioShack to keep open many stores it felt needed to be closed for solvency.
Recently, RadioShack has begun their effort to cast themselves into the mobile spotlight, carrying flagship phones, often on release. Ironically, a Bloomberg reporter tweeted that RadioShack was interested in selling some locations to Sprint.
Restructured or not — things don’t look good for RadioShack. With consumer interest drifting from DIY projects toward easily discarded hardware, RadioShack’s core business model seems doomed for failure. The company also ins’t part of the daily tech conversation, with Best Buy and Amazon often being our go-to source for things we may need.
Besides, when was the last time you thought about heading to RadioShack for something you needed?
Source: The Wall Street Journal