Wednesday, February 4, 2015

Radio Shack Goes Bankrupt

On February 2nd 2015, it was announced that one time electronics giant, Radio Shack was in talks to sell half of its stores to Sprint in a bankruptcy deal. In the deal that's currently on the table, Radio Shack, which operates more than 4,000 stores, would agree to turn over the leases to 2,500 of them, while the rest would be closed.

Radio Shack began its existence in 1921, as a mail order electronics retailer and over the years it expanded to become a formidable force in personal computer sales. The 1980s saw its greatest popularity as its reputation briefly became synonymous with quality. However, the rise of superstores such as Walmart and e-retailers such as Amazon has given consumers the chance to buy the same merchandise for a lower price.
 
It has been suggested that Sprint may decide to either co brand with Radio Shack, or it may replace the Radio Shack name with its own. It is also possible that another bidder such the Sanpower Group of China, which has expressed interest in Radio Shack, may try to purchase the failing electronics chain's assets. Amazon, looking for a chance to build a physical presence at brick and mortar is said to be interested as well.



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