You’re probably just as surprised as I am, that Radioshack still exists. There aren’t a ton of stores left, but they do still exist. However, there’s been reports lately that they are going to be filing for bankruptcy. And now a report out of Bloomberg is stating that they are in talks with Sprint to sell their stores to the third largest carrier. It appears that this is due to their bankruptcy filing.
According to Bloomberg, the court restructuring would let Radioshack emerge from Bankruptcy with a leaner business. When consumers started making the migration to the internet, it left Radioshack with 11 straight quarterly losses which took out their stockpile of cash. The company could file for bankruptcy protection as early as the first week of February. Under this plan, Radioshack would seek to emerge from bankruptcy with about 2,000 to 3,000 stores. Currently they have more than 4,000 stores. The company has also been reaching out to potential lenders for a loan that would finance its operations during the bankruptcy trial.
Selling a thousand or so stores to Sprint might help out Sprint. But one has to wonder how many people actually go into carrier stores these days to get a new phone or sign up for service? I don’t know about you, but I can’t remember the last time I went to a carrier store to buy a new phone or even sign up for service. That’s what the internet is for. With Sprint trying to make a turn around, this could help them, but it could also hurt more than help. It’ll be interesting to see what both Radioshack and Sprint do here. What do you think Sprint and Radioshack will do here? You think Sprint might buy these stores from Radioshack? Let us know your thoughts in the comments down below.