Thu, Apr. 9, 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)
Mon, Apr. 6, 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)
Wed, Apr. 1, 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)
Tue, Mar. 31, 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.
Fri, Mar. 27, 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)
Thu, Mar. 26, 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.
Wed, Mar. 25, 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.
Mon, Mar. 23, 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.
Fri, Mar. 20, 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).
Fri, Feb. 27, 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.
Thu, Feb. 26, 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)
Wed, Feb. 25, 12:50 PM
Thu, Feb. 12, 10:58 AM
- Sprint's (NYSE:S) 2.6% gain today adds to a three-day rise of 6.5% -- and +20% over a newsy past week that started with fiscal Q3 earnings showing the return of customer growth.
- The company is going against the industry grain by showing support for Title II reclassification by the FCC -- new regulations that are opposed by AT&T, Verizon and T-Mobile.
- "Our competitors are going to continue to invest [in networks] so they are representing a situation that won't play out," says Sprint CTO Stephen Bye.
- Network investment is a key issue for Sprint -- it has a lot of work ahead to unify its LTE bands, and it still lags AT&T/Verizon in network quality (though it's moving up).
- Meanwhile, dealing with RadioShack (NYSE:RSH) on some 1,750 co-branded stores gives a shot in the arm to Sprint distribution, which was strained by long lines during their recent "Cut Your Bill In Half" and "IPhone For Life" promotions.
- Shares are now up 36% off their 52-week low from mid-December.
Tue, Feb. 10, 2:12 AM
- RadioShack (NYSE:RSH), which filed for Chapter 11 bankruptcy last week, has received court approval for its proposed bankruptcy financing as it races to sell out and shut down some 1,100 stores by the end of the month.
- U.S. Bankruptcy Judge Brendan Shannon granted interim approval to the $285M financing arrangement with existing lenders, which ultimately will make about $20M in new money available.
Thu, Feb. 5, 5:26 PM
- As widely expected, RadioShack (NYSE:RSH) filed for Chapter 11 bankruptcy in Delaware, saying it has $1.2B in assets and $1.39B in debts.
- The plan reportedly includes an asset-buy deal with Standard General (its largest shareholder) and Sprint for a "store-in-store" model that would allow the RadioShack name to exist in some of the acquired shops.
Wed, Feb. 4, 7:57 PM
- The end is near for RadioShack (NYSE:RSH), as Bloomberg reports the company is nearing an agreement with creditors that would put it in bankruptcy by tonight or Thursday morning.
- RSH reportedly would sell leases on as many as 2,000 stores to Sprint (NYSE:S) and Standard General, its largest shareholder, the rest of the 4,000-plus U.S. stores would be closed.
- The NYSE would suspend trading and delist the stock.
RSH vs. ETF Alternatives
RadioShack Corp, together with its subsidiaries, is engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain. Its product lines are categorized into two platforms: mobility and retail.
Other News & PR