Hundreds of RadioShack stores to stay open in wake of bankruptcy deal
Hedge fund Standard General bid $145.5 million during an asset auction
A bankruptcy judge has approved the sale of RadioShack’s roughly 1,700 stores to the electronics retailer’s biggest shareholder.
The deal saves thousands of jobs as well as hundreds of the company’s storefronts, 250 of which were located in New York, Bloomberg reported. The buyer, hedge fund Standard General, is planning to manage the business together with Sprint Corporation, according to the website.
Standard General bid $145.5 million for the stores during an asset auction last week, but isn’t the only investor eyeing RadioShack’s real estate holdings, Bloomberg reported. Spring Mobile, which is part of video chain GameShop, won a previous auction to buy more than 160 stores. Spring has two months to decide which locations it wants, according to the website. RadioShack’s intellectual property will be auctioned off separately.
RadioShack entered bankruptcy with more than 4,000 stores, $1.2 billion in assets and a debt of $1.38 billion, according to court documents cited by the website. [Bloomberg] — Claire Moses