RadioShack files for bankruptcy, Sprint to take over some stores

radioshack
Northfoto/Shutterstock
RadioShack, the consumer electronics retail business that started out 94 years ago, on Thursday officially filed for Chapter 11 bankruptcy.

Unable to keep up with the pace of change in a fast-moving market, and with revenue continuing to fall, news of the bankruptcy will surprise few. However, it looks like RadioShack will live on, though in a diminished form.

Hedge fund Standard General will acquire up to 2,400 of RadioShack’s 4,000 U.S. stores, while a deal with Sprint will see the telecom giant move into around 1,750 locations.

Store-within-a-store

The agreement includes a store-within-a-store concept that involves Sprint taking over around a third of retail space at the RadioShack stores to sell mobile devices and wireless plans.

It’s understood that Sprint will be the main brand on storefronts, while the RadioShack brand will still be visible within the stores.

Sprint CEO Marcelo Claure said in a statement: “We’ve proven that our products and new offers drive traffic to stores, and this agreement would allow Sprint to grow branded distribution quickly and cost-effectively in prime locations.”

radioshack-check-out

RadioShack

He added, “Sprint and RadioShack expect to benefit from operational efficiencies and by cross-marketing to each other’s customers.”

The telecom firm currently has around 1,00 company-owned retail outlets, so the deal looks set to more than double its presence. The agreement is likely to be signed and sealed in the next few months, though it’s still possible for other groups to put in bids for the locations during the bankruptcy process.

Amazon?

Thursday’s news follows reports earlier this week that suggested Sprint would have some involvement with RadioShack. The same reports also said Amazon was in discussions to take over some of RadioShack’s stores, possibly to sell its hardware and also act as a collection and drop-off point for Amazon goods, but up to now there’s been no word on any deal regarding the online retailer.

Once the go-to store for tinkerers and hobbyists, RadioShack’s decline has been a long one. In 2006, the company closed around 500 stores in a restructuring exercise that also saw hundreds of positions go at its Fort Worth headquarters.

In a further move to boost its business, the company last year tried to close more than 1,000 of its stores, but an issue with lenders meant it could only close 200 outlets at the most in a single year.

The writing was on the wall earlier this week when the New York Stock Exchange announced it was moving to delist the company’s stock and suspend trading in its shares.

Emerging Tech

Awesome Tech You Can’t Buy Yet: A.I.-powered cat toys, wallets, food containers

Check out our roundup of the best new crowdfunding projects and product announcements that hit the web this week. You may not be able to buy this stuff yet, but it sure is fun to gawk!
Mobile

Sprint now lets you add Hulu's Live TV service to your unlimited plan

Sprint recently introduced three new data plans to its roster -- Unlimited Basic , Unlimited Plus, and Unlimited Premium. Here, we break down your options to help you decide which one is best for you and your family.
Smart Home

SiriusXM, Amazon team up for two Echo Dot deals with freebies

Amazon and SiriusXM partnered on two joint promotions. New SiriusXM subscribers can receive a free Amazon Echo Dot. People who already own an Echo device can sign up for new SiriusXM subscription with the first three months free.
Home Theater

How to buy speakers: A beginner’s guide to home audio

From the difference between bookshelf speakers and monitors to the proper way to audition, our ultimate speaker buying guide has all the information you need to create your own home audio nirvana.
Product Review

It's got game. But the Razer Phone 2 is still crippled by its camera

The Razer Phone 2 will impress with its gaming prowess and 120Hz screen. But if you care at all about taking pictures on your phone, skip it. While Razer has improved the camera, it’s still short of the competition.
Mobile

Google’s new floating keyboard is so helpful, it’ll put you on cloud nine

Bezel-less smartphones look great, but typing isn't always so good, as grip can be more of a challenge. That's where Google's Gboard keyboard comes into play. It now has a floating keyboard feature to help out.
Mobile

Insane 5G Xiaomi Mi Mix 3 boasts a retro slide-up camera

Xiaomi will announce the Mi Mix 3 smartphone on October 25, and according to the company's spokesperson, it will be capable of connecting at 5G speeds and feature 10GB of RAM -- two world firsts.
Mobile

Declutter your life with our favorite wireless chargers for Android and iPhones

We checked out the best wireless phone chargers to make tangles and uncooperative ports a thing of the past. Whether you have an iPhone or Android, find out which wireless charging pads are worth buying, and how their features compare.
Deals

Save up to $900 with the best smartphone deals for October 2018

Need a better phone but don't want to spend a fortune? It's never a bad time to score a new smartphone and save some cash. We rounded up the best smartphone deals available that can save you as much as $900.
Mobile

Huawei confirms it won't be selling the Mate 20 series in the U.S.

Huawei has released the Mate 20, Mate 20 Pro, and Mate 20 X. With all-new Kirin processors, advanced A.I. brains, and an amazing triple camera, here's absolutely everything you need to know about the new Mate 20 series.
Photography

8 weird, useful camera accessories for your iPhone or Android

With the rise of smartphone cameras comes an explosion of accessories aimed at enhancing your photography skills. Here, we take a look at a few, from add-on grips to entire camera units designed specifically to work with iOS devices.
Mobile

eBay’s new Instant Selling program turns old smartphones into new money

With eBay's new Instant Selling program, selling your smartphone just got easier. Immediately after listing your device, you'll receive a voucher that can be used toward the purchase of a new phone through the site.
Mobile

Razer Phone 2 vs. Red Magic Phone vs. Honor Play: Which gaming phone is best?

Mobile gaming is serious business nowadays. But which high-powered gaming phone is best for you? We pitted the Razer Phone 2 against the Red Magic Phone and the Honor Play to find out which of the three deserves your attention.
Deals

Make some time for the best smartwatch deals for October 2018

Smartwatches make your life easier by sending alerts right on your wrist. Many also provide fitness-tracking features. So if you're ready to take the plunge into wearables and want to save money, read on for the best smartwatch deals.