“RadioShack Corp. is preparing to shut down the almost-century-old retail chain in a bankruptcy deal that would sell about half its store leases to Sprint Corp. and close the rest, according to people with knowledge of the discussions,” Bloomberg reports.
The story continues, “The locations sold to Sprint would operate under the wireless carrier’s name, meaning RadioShack would cease to exist as a stand-alone retailer, said the people, who asked not to be identified because the talks aren’t public.”
Another option, the story notes, is for Sprint and RadioShack to co-brand the stores.
In a separate, follow-up story, Bloomberg says “Amazon has considered using the RadioShack stores as showcases for the Seattle-based company’s hardware, as well as potential pickup and drop-off centers for online customers, said one [person], who asked not to be named because the deliberations are private.”
Part of the problem for RadioShack, according to the Associated Press is that The New York Stock Exchange plans to delist the company’s shares.
Notes the AP story, “RadioShack Corp. has been struggling with weak sales that have rendered it unprofitable. The Texas-based company warned last year that it may have to seek Chapter 11 bankruptcy and its CEO recently warned it might not be able to find a long-term plan to stay afloat.”
For its third quarter that ended Nov. 1, 2014, RadioShack lost money, meaning that the company has now lost money for 11 consecutive quarters.