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VOL. 41 | NO. 9 | Friday, March 03, 2017
RadioShack files for bankruptcy for second time in 2 years
FORT WORTH, Texas (AP) — RadioShack has filed for Chapter 11 bankruptcy protection for the second time in just over two years, putting the future of the nearly 100-year-old electronics retailer in doubt.
Once known as the place to buy batteries and obscure electronic parts, RadioShack has struggled to hang on to customers as more people shop on Amazon.com and other online retailers.
It redesigned its stores about three years ago and stocked its shelves with popular headphone brands and the latest gadgets. But that didn't attract more shoppers and the retailer filed for bankruptcy protection in 2015. After that, it tried to lure smartphone-loving shoppers by opening Sprint wireless carrier shops within 1,200 RadioShack locations. But that didn't help either: RadioShack CEO Dene Rogers said Thursday that mobile phone sales were "surprisingly poor," especially in recent months.
RadioShack said Thursday that it is in the process of closing 200 of its stores and will evaluate its options for the remaining 1,300. Sprint, meanwhile, said Thursday that it signed a deal to turn several hundred RadioShack locations into Sprint stores, but declined to give a specific number.
RadioShack, based in Fort Worth, Texas, has nearly 5,900 employees, according to bankruptcy paperwork filed on Wednesday.
The company said that its stores will remain open, but said that anything sold cannot be returned. Items bought before March 2 can still be returned until further notice, the company said on its website. Anyone with a RadioShack gift card has until April 7 to spend it.