RadioShack Files For Bankruptcy, Closes Approximately 200 Stores
RadioShack recently filed bankruptcy and will be closing about 200 stores. This is the second filing that the company has done in two years. The first time that the company filed for bankruptcy was in 2015.
According to a report, RadioShack first filed bankruptcy in 2015 and was then replaced by General Wireless. The company made a deal with Sprint to open co-branded stores then. However, the deal was not successful.
RadioShack will close approximately 200 stores and the remaining 1,300 will be evaluated. In the meantime, Sprint will convert the stores. The RadioShack's bankruptcy filing is not material to Sprint's sales. RadioShack has been a company of electronics for over 100 years. Its first bankruptcy filing has been due to the fluctuation of sales for their products. The company has been due to customers opting to buy products through Best Buy Co. Inc. and Amazon.com Inc.
Right after the first bankruptcy filing, RadioShack partnered with Sprint. However, the two companies had been challenged with sales since then. The first RadioShack store was opened in Boston in 1921. The first store sold ham radios and other radio equipment. The company has been the go-to for many consumers when it comes to electronics.
In fact, in 2013 RadioShack was the eight-largest company for electronics. By 2014 the company's sales declined as many other electronics company arose. The mobile industry also has to do with the company's loss.
The company has reduced operating expenses by 23% and the profit increased by up to 8%. RadioShack though is going to provide employees jobs in other Sprint-RadioShack owned stores that will not close. There will be a smooth transition for the employees to be distributed properly. As of this time, RadioShack needs to determine whether the company is still good in the business.