RadioShack files for bankrupcy and Sprint scores 1750 retail stores2015-02-06 10:03 by Daniela
Tags: RadioShack, Sprint
After almost 100 years as a stand-alone retail brand, RadioShack has filed for Chapter 11 bankruptcy protection and intends to sell up to 2000 stores to its largest shareholder, investment firm Standard General. The remainder of its 4,000 U.S. stores will be closed.
Meanwhile, wireless carrier Sprint Corp. has signed a deal with Standard General to open mini-shops in as many as 1,750 of the RadioShack stores Standard General is buying. In those stores, Sprint employees would sell the company's services.
"Under the terms of the new agreement, Sprint would effectively operate a store within a RadioShack store, occupying approximately one third of the retail space of each location," Sprint said. "Sprint employees will sell mobile devices and plans on all Sprint brands including Boost and Virgin Mobile. The stores will be co-branded with Sprint being the primary brand on storefronts and in marketing materials."
"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," said Sprint CEO Marcelo Claure in the statement. "Sprint and RadioShack expect to benefit from operational efficiencies and by cross-marketing to each other's customers."
The deal still requires approval from the bankruptcy court.
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