Sep. 1, 2015, 3:45 AM
- In a last-ditch effort to get repaid, RadioShack's (OTCPK:RSHCQ) junior creditors are suing hedge fund Standard General, the company's largest pre-bankruptcy shareholder and current owner.
- The lawsuit also names Wells Fargo (NYSE:WFC) and former Chief Executive Officer Joseph Magnacca, alleging they helped Standard General take over the company at creditors' expense.
Jun. 13, 2015, 4:35 PM
- The plan, filed Friday, doesn’t include specific distribution amounts. Unsecured creditors and other claimholders will get a pro-rata share of the assets remaining in a liquidating trust.
- The plan follows the sale of 1,700 RadioShack (NYSE:RSH) stores to Standard General LP for $145M. The hedge fund plans to run the locations under a co-branding arrangement with Sprint. Standard General also bought data on about 67M customers in a $26.2M deal for assets including the RadioShack name.
- Source: Bloomberg
May 21, 2015, 3:51 AM
- A U.S. bankruptcy judge has cleared the way for RadioShack (OTCPK:RSHCQ) to sell its trademark, customer data and other intellectual property to a Standard General affiliate for about $26M, rejecting a competing bidder's claim that the auction process was unfair.
- RadioShack also resolved objections to the sale from several state attorneys general who were concerned the deal could threaten consumers' privacy.
- Previously: Standard General wins auction for RadioShack brand (May. 14 2015)
May 14, 2015, 4:10 AM
- The auction for RadioShack's (OTCPK:RSHCQ) trademark, customer data and other intellectual property has closed with Standard General posting a $26.2M winning bid.
- RadioShack filed for bankruptcy in February after years of heavy competition from online and bricks-and-mortar rivals.
- Since then, the electronics retailer has sold 1,700 of its stores to Standard General (which will be co-branded with Sprint) and has announced plans to shut down the others.
- Previously: Last bid on RadioShack name at $15M (May. 12 2015)
May 12, 2015, 1:18 PM
- An affiliate of Standard General is the highest bidder so far at $15M on the auction of the RadioShack (NYSE:RSH) brand name.
- The auction is still taking place in New York.
- A sale of RadioShack customer data is taking place separately.
Apr. 9, 2015, 11:16 AM
- Sprint (NYSE:S) sets tomorrow as the date to open 1,435 new co-branded Sprint/RadioShack (OTCPK:RSHCQ) stores, more than doubling its company-owned store footprint.
- Sprint will work as a "store-within-a-store," but previous reporting has its name most prominent on the storefront and in marketing materials, and its staff will manage all mobile device sales.
- The company says it means 3,500 new jobs and that it will actively recruit a workforce to fill them.
- Previously: Simpler RadioShack taking form (Apr. 06 2015)
- Previously: Details emerging on new RadioShack/Sprint retail (Apr. 01 2015)
Apr. 6, 2015, 9:02 AM
- The new RadioShack (NYSE:RSH) may get a new name if a deal with Salus Capital isn't worked out within six months.
- Standard General's top brass seem nonplussed by the loss of the brand identity as they chart a fresh course for the chain in smaller communities with a focus in the non-Sprint part of the stores on a simpler product mix (chargers, home security, electronics).
- Previously: Details emerging on new RadioShack/Sprint retail (Apr. 01 2015)
Apr. 1, 2015, 8:15 PM
- After a narrow swipe with total liquidation, the new RadioShack (RSH, OTCPK:RSHCQ) -- or at least the 40% or so of stores that will survive -- will roll out later this month.
- Of the 1,700-plus locations that will remain from more than 4,000, Sprint (NYSE:S) will share more than 1,400, taking up about a third of the store and staffing with its employees; the Sprint logo will dominate, however.
- Phone sales (which were in decline for the Shack) will be outsourced entirely to Sprint. Lower-margin electronics like laptops and tablets will go away, replaced by RadioShack focusing on house-brand batteries, chargers and speakers. Stores will stock about 75% fewer items.
- The bankruptcy case will now turn to RadioShack's intellectual property, including an extensive customer database.
- Reducing the prominence of the RadioShack name may come in handy: Standard General has a six-month royalty-free license to use the name, but if that's sold to someone else, the fund will need to take it off the stores.
- Previously: RadioShack gets OK for Standard General rescue; Sprint to co-operate 1,743 stores (Mar. 31 2015)
Mar. 31, 2015, 5:00 PM
- In the nick of time before all-out liquidation, RadioShack (OTCPK:RSHCQ) has won court approval for Standard General's rescue deal that will permit it to save 1,743 stores and 7,500 jobs.
- Despite objections from competing lender Salus Capital Partners, Judge Brendan Shannon said Standard General offered more money (about $160M) and was the only bidder with the “added and terribly important benefit of saving more than 7,000 jobs and preserving a century-old American retailing icon."
- The 1,743 stores represent a substantial slimming from the Shack's overwhelming 4,000 stores; Standard General intends to operate the remaining stores along with Sprint (NYSE:S).
- Salus has first claim on RadioShack's IP, including trademark, patents and customer lists.
- The sale will likely leave nothing (or very little) for any unsecured creditors. The firm is estimated to owe them about $500M.
Mar. 27, 2015, 2:15 AM
- An attorney for Salus Capital, RadioShack's (NYSE:RSH) largest creditor, blasted the electronics retailer's sale process yesterday, calling for the auction to be reopened.
- "It's a charade, judge," Jay Goffman, told the court. Salus said in court papers it had bid $271M in cash, compared to Standard General's 16M in cash (and debt forgiveness).
- RadioShack has asked Judge Brendan Shannon to sign off on the Standard General takeover, but Shannon said he will take until Monday to decide if it should be approved.
- Previously: RadioShack lender asks judge to intervene (Mar. 26 2015)
Mar. 26, 2015, 2:53 AM
- Salus Capital Partners, a RadioShack (NYSE:RSH) lender, has asked U.S. Bankruptcy Judge Brendan Shannon to intervene in the auction of the electronics retailer, saying its $271M joint bid to liquidate the chain that was "materially superior" to that of Standard General's.
- Standard is offering to pay for most of its offer in the form of a "credit bid," or debt forgiveness.
- The outcome is will likely be announced this morning, when Shannon is scheduled to approve the results of the auction.
Mar. 25, 2015, 2:03 AM
- Countering the bids of several liquidators, Standard General has increased its offer for 1,740 stores of bankrupt electronics retailer RadioShack (NYSE:RSH), raising its original $145M bid by at least $20M with a promise to keep 7,500 jobs.
- According to sources, the auction is being complicated by disputes among creditors over how the hedge fund would pay for its bid. Much of Standard's offer is taking the form a "credit bid," or a pledge to forgive some of what it is owed.
Mar. 23, 2015, 3:55 AM
- RadioShack's (NYSE:RSH) fate hangs in the balance today when a bankruptcy auction kicks off, pitting companies that want to liquidate the retailer's remaining assets against a hedge fund that has vowed to keep about half the chain's stores open.
- Standard General, which has allied with Sprint (NYSE:S) in a bid to create co-branded outlets, calls its offer the "only hope" for RadioShack to survive bankruptcy and stave off liquidation.
Mar. 20, 2015, 2:40 AM
- Standard General's reduced buyout offer of $145.5M is RadioShack's (NYSE:RSH) only hope of surviving bankruptcy and staving off liquidation, the hedge fund's lawyers said yesterday.
- The offer is less than the earlier estimate of $200M because it only covers 1,723 outlets compared with the 2,000 Standard General sought originally.
- The offer also requires RadioShack’s proposed new owner to come up with only $18.6M in cash. The rest of the offer is in the form of a "credit bid," or offer to cancel debt.
- Standard intends to keep about half of the stores open and operate them under an agreement with Sprint (NYSE:S).
Feb. 27, 2015, 4:13 AM
- GameStop (NYSE:GME) will likely increase the number of its Spring Mobile stores after the company bid for the right to take 163 leases over from electronics retailer RadioShack (NYSE:RSH), which filed for bankruptcy this month.
- RadioShack will ask U.S. Bankruptcy Judge Brendan Shannon today to approve the agreement with GameStop, which had 311 Spring Mobile stores on record as of November.
Feb. 26, 2015, 2:09 AM
- RadioShack (NYSE:RSH) has received approval from a U.S. Bankruptcy Court judge to auction off about 2,000 of its stores with an initial $200M bid from hedge fund Standard General.
- Standard is planning to keep about half of the company's stores open and operate them under an agreement with Sprint (NYSE:S).
- RadioShack lawyers also said the company received bids for leases to 205 of the 1,100 locations it plans to close this month, including interest from a unit of GameStop (NYSE:GME).
- Previously: GameStop interested in some RadioShack locations (Feb. 25 2015)