NEW YORK (AP) – Struggling electronics retailer RadioShack has filed for Chapter 11 bankruptcy protection and says it will sell up to 2,400 stores.
General Wireless, a subsidiary of Standard General, RadioShack’s largest shareholder, has agreed to buy 1,500 to 2,400 of the company’s U.S. stores. As part of the bankruptcy plan, Sprint may open mini-shops in as many as 1,760 of the acquired RadioShack stores.
The Fort Worth, Texas company said Thursday that it has filed a motion to proceed with closing the rest of its 4,000 U.S. stores. It is also having discussions to sell all of its remaining assets.
RadioShack Corp. introduced one of the first mass-market personal computers and used to be the go-to stop for consumers’ home electronics needs. But it struggled as shoppers increasingly shifted to making purchases online and growth in its wireless business slowed. It has suffered years of losses.
The New York Stock Exchange suspended trading of its shares on Monday and sought to delist it. The NYSE requires companies meet certain market capitalization thresholds to remain on the exchange.