RadioShack Headed for Second Bankruptcy Filing in as Many Years
RadioShack’s owner is preparing to seek bankruptcy protection for the second time in two years, according to people familiar with the matter, as the 1,500-store chain looks to further shrink to survive. Parent company General Wireless Operations Inc. is in discussions with partner Sprint Corp. and potential strategic investors about reducing the chain’s footprint and could file for chapter 11 protection as soon as Tuesday, the people said. Sprint operates sections in many RadioShack stores that sell its wireless service and smartphones.
Total Retail's Take: One has to wonder if RadioShack is going to be able to survive this latest bankruptcy filing. The retailer is overextended with its vast physical footprint, and has struggled to keep pace with other consumer electronics brands online (including Best Buy and Amazon.com). Furthermore, an increasing number of manufacturers are choosing to sell direct to consumer, eliminating middlemen like RadioShack from the equation. Sad to say, but I think RadioShack may be next on the list of retailers that go out of business.