RadioShack brand to be auctioned in July
RadioShack once had dozens of stores throughout Puerto Rico, which have been phased out as part of the Chapter 11 bankruptcy. (Credit: © Mauricio Pascual)
General Wireless IP Holdings LLC, which owns the RadioShack brand in the United States, Canada, Asia, Europe and other territories throughout the world, will auction its controlling interest in the brand, it announced.
The company, owned by General Wireless Operations Inc., has retained Hilco Streambank to conduct the auction, which will open the bidding process July 18.
The sale hearing will take place July 24, and will occur under Section 363 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
On June 8, 2017, the Company entered into an agreement with Kensington Technology Holdings, LLC for the sale of the membership interest for $15 million, subject to higher and better offers, through what is known as a “stalking horse agreement.”
As of March 2017, General Wireless Operations Inc. operated more than 1,500 stores under the RadioShack® brand across the United States, Puerto Rico, and U.S. Virgin Islands. In addition, it had a network of approximately 425 RadioShack dealer-franchise outlets located throughout the US. In Southeast Asia, RadioShack branded stores are operated by a franchisee whose territory comprises the ten member countries within the Association of Southeast Asia Nations.
However, it filed for Chapter 11 bankruptcy protection and has since closed hundreds of stores, including former Puerto Rico locations.
Long ago Radio Shack lived up to its name! It was the place to go to find tiny pieces or parts that related to the days of vacuum tube radios. Store costs were much lower and space to store tiny parts yielded profitable results.
We now live in an age when finding tiny parts and paying little to fix costs more than buying a replacement or enhanced new product! Radio Shack changed to this reality and now finds the internet does the new mission effectively with profit at prices Radio Shack can’t meet. Suddenly it is in the group of retailing that has lost its way to survive.
Of course, it may have some access to supply or distribution that can work with the internet in a competitive manner for some entity that can acquire the assets and not the liabilities of established costs that are not able to be eliminated except via bankruptcy like pensions, employment contracts, leases, tax debts, etc.
Those of us still able to find out what is needed to fix and a way to get the parts are going to just die off. At 85, I understand! Oh yeah, we are part of the shrinking customer base!