A unit of GameStop Corp. won an auction for the right to take over more than 160 stores that bankrupt consumer-electronics retailer RadioShack Corp. was planning to close. In court documents filed Wednesday in Wilmington, Delaware, RadioShack said GameStop's Spring Communications Holding — known as Spring Mobile — will pay $15,000 a store to take over leases at locations around the U.S. Spring has about two months to decide which of the stores it wants.
Bankrupt electronics retailer RadioShack received court approval on Friday for its plan to try to sell the leases to more than 1,100 stores that it will close by the end of February. RadioShack first proposed closing many of the locations early last year as it struggled to turn around its money-losing operations, but lenders demanded the stores remain open. After filing for Chapter 11 bankruptcy earlier this month, RadioShack moved quickly to abandon the stores to avoid paying March rent.
Brookstone, the luxury-gadget retailer, won bankruptcy court approval of its plan to sell the chain to a group of Chinese buyers for about $174 million that will be used to pay creditors. U.S. Bankruptcy Judge Brendan Linehan Shannon yesterday in Wilmington, Delaware, approved the sale to a company backed by the Chinese conglomerate Sanpower Group and the Hong Kong-based private equity firm Sailing Capital. The sale is the cornerstone of the retailer's bankruptcy exit plan, also approved today. "Today marks a new chapter in Brookstone's history," CEO Jim Speltz said in an emailed statement.
Walgreens, armed with a new patent, sued Rite Aid, CVS and Shopko Stores Inc., claiming they're misappropriating its technology for refilling prescriptions with mobile phone scanners. Walgreens, the largest U.S. drugstore chain, with $72 billion in sales last fiscal year, got a patent last month for a system to "express refill" prescriptions and is entitled to exclusive use of the invention, the Deerfield, Ill.-based company said in complaints filed Jan. 31 in federal court in Wilmington, Del.
Edwin Watts Golf Shops, which sells golf equipment and apparel online and through 90 U.S. retail stores, filed for Chapter 11 bankruptcy protection. The company, owned by an affiliate of private-equity firm Sun Capital Partners Inc., listed assets and liabilities between $100 million and $500 million. Callaway Golf Co. is the largest unsecured creditor, with a claim of $4.6 million, according to papers filed today in U.S. Bankruptcy Court in Wilmington, Delaware.
Harry & David, the gourmet food-gift company, filed for bankruptcy protection after reaching an agreement with lenders to trim debt. The Medford, Ore.-based retailer, owned by investment funds controlled by Wasserstein & Co., listed assets and debt of as much as $500 million each in a Chapter 11 petition filed today in U.S. Bankruptcy Court in Wilmington, Delaware. Companies use Chapter 11 of the bankruptcy code to reorganize, cut debt and continue operating.