After years of struggling sales amidst competition with online retailers, RadioShack (Fort Worth, Texas) filed for Chapter 11 bankruptcy Thursday evening. The electronics retailer has reached an agreement with Standard General LP, a New York-based investment firm, slated to acquire 1500 to 2400 of RadioShack’s company-owned stores and the rest of its remaining assets, reports Forbes.
According to statements from RadioShack, transitioned assets will be purchased under General Wireless, an entity formed to acquire the stores under the asset purchase agreement. Under this agreement, mobile wireless giant Sprint will establish a dedicated store-within-store retail presence in up to 1750 of the acquired stores.
“These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders,” says RadioShack ceo Joe Magnacca.
RadioShack currently operates approximately 4000 company-owned stores in the United States, with more than 1000 dealer franchise stores in 25 countries. Its Mexican subsidiaries and Asia operations are not included in the Chapter 11 filings.
Originally created as a leather shoe parts and shoe repair store, the electronics retailer was founded 94 years ago.