|This Radio Shack located in Dayton will likely close. The Montgomery County Sheriff has taken calls over at this location numerous times after reports of burglaries and robberies.|
As predicted, the country's most convenient electronics store has officially filed for bankruptcy. The Fort Worth based company is on a downward spiral.
I am really sadden by this news. Like the demise of Radio Shack is huge. It hits like a cannon.
I am preparing for the news that Kmart is going down hard too. It's one of the many things that happened during the economic recession of 2007.
They couldn't survive the wave....!
On January 15, 2015, the Wall Street Journal reported RadioShack was preparing a bankruptcy filing that could come as early as February. Officials of the company declined to comment on the report.
A separate report by Bloomberg claimed the company might sell leases to as many as half its stores to Sprint.
Later in January 2015, the New York Stock Exchange issued RadioShack a warning stating it would be delisted if its average market capitalization remained below $50 million for longer than thirty consecutive days. RadioShack had received a similar warning in July of the previous year.
The New York Stock Exchange announced that shares of RadioShack were suspended and delisting procedures would commence.
RadioShack died years ago; we're only now holding the funeral. Good active managers have avoided RadioShack for a long time.—Gershon Distenfeld, Director, AllianceBernstein, CBS News.
On February 2, 2015, Bloomberg reported RadioShack was in talks to sell half of its stores to Sprint Corporation and close the rest, effectively rendering RadioShack no longer a stand-alone retailer.
Later the same day, it was reported that Amazon.com and Brookstone were also listed among potential bidders for those same store locations.
The next day, CNN Money reported RadioShack to be in default of its loan from Salus Capital.
Following these reports, some employees were instructed to begin reducing prices and transferring inventory out of stores designated for closing to those that would remain open during the bankruptcy proceedings.
Most employees, however, remained "in the dark" as to the company's future.
Many stores had already closed abruptly on Sunday, February 1, 2015, with employees only having a few hours advance notice.
RadioShack announced that it had filed for Chapter 11 bankruptcy protection.