RadioShack Soon To Be No More
Struggling electronics retailer RadioShack announced on February 5 that they are officially under Chapter 11 bankruptcy reorganization.
The company, which started in 1921 in Boston, has suffered 11 straight quarterly losses and has held back rent payments to landlords. More than 1,700 of their nearly 4,200 stores are slated to close. See the complete list here.
Years of poor marketing, poor customer service and a general failure to keep up with the ever-evolving consumer electronics retail industry are just some of reasons cited for RadioShack's collapse.
Among the stores set to close is the Sikes Senter Mall location in Wichita Falls. The Kemp Blvd store was not on the list. A call to that location was referred to the corporate media offices in Fort Worth. That call was answered by an automated system referring inquiries to the website. A message left at that number has not been returned.
Sprint has reportedly been in talks for some time to take over many of the ailing retail stores. This would more than double Sprint’s retail footprint across the country. More than half of the stores could be acquired by Sprint. Remaining RadioShack locations will simply shut down. Some locations closed abruptly on February 1 as the company began its new fiscal year.
RadioShack was officially de-listed from the New York Stock Exchange on February 2. The company’s stock has been in trouble for some time. Gershon Distenfeld, Director of Alliance Bernstein told CBS News “RadioShack died years ago; we're only now holding the funeral. Good, active managers have avoided RadioShack for a long time.”