For years people in Texas and across the nation flocked to RadioShack to purchase electronics. However, the retailer fell on hard times, and eventually filed for bankruptcy twice. In fact, it has recently completed its second bankruptcy, but things are not the same as they once were.
Following this second bankruptcy, RadioShack will be first and foremost an online retailer. However, as many as 28 brick-and-mortar locations owned by RadioShack will remain open, as will a so far unknown number of independent stores. RadioShack estimates that it’s yearly revenue could be as much as $17.5 million.
Back in 2014, RadioShack had approximately 5,200 brick-and-mortar locations and employed approximately 27,500 people. However, when online shopping grew in popularity, these brick-and-mortar locations went from being beneficial to burdensome. This lead the chain to close over 1,000 shops in 2014. The retailer then filed for bankruptcy in February 2015, shuttering almost 1,800 shops.
A ray of hope emerged when RadioShack partnered with Sprint. However, this relationship went south, and by March 2017 RadioShack entered the bankruptcy process a second time. At this point, the retailer only had around 1,500 brick-and-mortar locations and less than 6,000 people were employed by RadioShack. Through the bankruptcy reorganization process, many of these stores have since shut their doors. It has not yet been reported how many people will remain employed by RadioShack as it exits the bankruptcy process.
RadioShack is not the only renowned retailer to file for bankruptcy in 2017. Payless Shoes, the children’s clothing chain Gymboree and even Toys R Us have also filed for bankruptcy. It remains to be seen how these retailers will emerge from the bankruptcy process, especially in light of the upcoming holiday season. And, while these are big-name operations, many small family-owned businesses may also be considering filing for bankruptcy as a means to address their debts. Those who have questions about the Chapter 11 bankruptcy process may want to seek the assistance of an attorney who can provide them with further information.
Source: CNN Money, “RadioShack survives its second bankruptcy — barely,” Chris Isidore, Nov. 3, 2017