RadioShack Receives Lifeline From Kensington Capital Holdings
RadioShack isn’t down for the count just yet — the company’s intellectual property is set to be purchased by Kensington Capital Holdings, a family investment firm located just outside of Boston, for $15 million. The consumer electronics retailer already owed Kensington Capital $23 million from a loan two years back when the investment firm partnered with RadioShack and Sprint to co-brand 1,400 stores. In its current contract, details for the retailer's intellectual property include Kensington Capital licensing RadioShack to General Wireless.
Total Retail’s Take: The major takeaway here is that RadioShack will continue to exist — at least in some capacity. Kensington Capital Holdings won the auction for the ailing retailer, with plans to license the 96-year-old brand back to General Wireless, the bankrupt company that does business as RadioShack. A declining store count — RadioShack has 425 independent dealer stores, an e-commerce business and fewer than 100 brick-and-mortar stores, compared with 1,400 stores earlier this year — suggests that e-commerce will be the focal point for the brand going forward.