Bloomberg news is reporting today that RadioShack Corp. is preparing to shut down the almost-century-old retail chain in a bankruptcy deal that would sell about half its store leases to Sprint Corp. and close the rest.
The company declined comment, but Bloomberg is quoting anonymous sources suggesting that Radio Shack would sell some locations to Sprint, which would operate under the wireless carrier’s name. As proposed, RadioShack would cease to exist as a stand-alone retailer.
Several news sources said RadioShack is considering a bankruptcy filing as soon as today.
The negotiations could still break down without a deal being reached, or the terms could change. Sprint and RadioShack also have discussed co-branding the stores, Bloomberg said. Another bidder also could emerge for Radio Shack, which traces its history back to 1921 when it began as a mail-order retailer for amateur ham-radio operators and maritime communications officers.
RadioShack, based in Fort Worth, Tex, received a rescue financing package from Standard General LP in October, and the hedge fund would serve as the lead bidder in a filing and provide debtor-in-possession financing after filing, Bloomberg quoted sources as saying.