While innovation in electronics and technology is bringing the impossible to mankind, it is getting really difficult for businesses to keep themselves profitable. RadioShack just filed for bankruptcy and announced that it will close more than 1700 stores at the end of February.
2015 started on a really great note in the electronics industry with CES 2015 in Las Vegas, but this news really indicates that most electronics are sold online these days and the future of electronics may be great but it is not the same for electronic stores. RadioShack has more than $1 billion of liabilities and it has decided to close operations of these stores because of that. Texas-based RadioShack has filed for Chapter 11 bankruptcy this Thursday. The close sales are on, and the stores mention that on their entrances. More than half of the stores will be closed out of a total of 400 stores in the country.
Sprint is set to occupy these stores and sell phones and wireless connections along with daily need items from RadioShack. But still, more than 1000 RadioShack stores have survived the bankruptcy and they will remain operational keeping the brand store alive.
The co-branded shops will be open from March. RadioShack is surely regretting the big loan now that it accepted back in late 2013. The bad entrepreneurial move by such an old and experienced player has brought them in financial turmoil.
We hope that RadioShack recovers from this bad phase and regains the reputation again as the best electronics retailer in the U.S. The co-branded stores and sole ownership stores will continue to serve and live up to the name. The restructuring plan after this situation has settled will be something everyone will want to see.
The franchise stores were not under the bankruptcy, so the brand name lives on. But we hope Sprint’s ownership will help RadioShack come up from the financial chaos.