RadioShack has announced that it has filed for bankruptcy in a Delaware court, just two years after its previous bankruptcy filing in 2015.
After its previous bankruptcy filing, RadioShack, which was acquired by General Wireless, attempted to boost sales and revenue by partnering with Sprint to create co-branded stores.
That doesn’t seem to have helped the almost century-old electronics chain, whose success with walkie-talkies, tape recorders, and other electronics gadgets was washed away by the advent of mobile phones and companies like Amazon and Best Buy.
Radioshack’s partnership with Sprint didn’t turn out to be as profitable as they anticipated either, with Radioshack citing the “surprisingly poor performance of mobility sales” as the cause of their bankruptcy filing.
In a statement, Radioshack announced that they plan to close around 200 stores and that they are “evaluating options” for the remaining 1,300.
Sprint, in a separate statement, reported that Radioshack’s bankruptcy filing are “not material to Sprint’s overall sales results.” Some of Radioshack’s stores will be converted to Sprint corporate-owned stores, while Sprint inventory (and employees) at closing Radioshack branches will be moved to Sprint-owned stores.
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