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.