radioshack_logo_stackedThe end may be near for RadioShack retail stores after a dire September warning that the company would not be able to finance operations "beyond the very near term" without a sale, investment, or company restructuring. According to Bloomberg, RadioShack may be planning to sell half of its stores to Sprint and close the other half in a move that would potentially see the termination of the RadioShack brand.

The locations sold to Sprint would operate under the wireless carrier's name, meaning RadioShack would cease to exist as a stand-alone retailer, said the people, who declined to be identified because the talks aren't public.

RadioShack was established in 1921 and flourished for many years, but in the early 2000s, the retail chain began seeing some decline in sales. In 2006, RadioShack closed 500 stores and laid off more than 400 employees in an effort to cut costs, but the brand has continued to struggle since that time as consumers have turned towards online retailers like Amazon and dedicated carrier stores from AT&T, Sprint, T-Mobile, Verizon, and more.

The company warned investors in September that it could be forced to file for bankruptcy protection, but RadioShack bankruptcy rumors have circulated since 2012, when RadioShack first began seeing major losses. A second consolidation was announced in 2013, with an additional 1,100 stores to be closed, but that move has since morphed into the liquidation plan to sell to Sprint or another company as RadioShack has continued to lose value over the course of the past year.

Terms are still being discussed between RadioShack and Sprint and Bloomberg warns that negotiations could break down or that plans could change. The two companies have discussed co-branding, and it's still early enough in negotiations that another bidder could purchase RadioShack and keep the retail chain operational.

Update Feb 3 4:34 AM PT: Bloomberg also reports that Amazon is in talks to acquire some RadioShack locations to boost its brick-and-mortar retail presence in the United States. RadioShack has over 4,000 U.S. locations. The discussions are reportedly ongoing and a deal may not be reached.

Update Feb 5 2:21 PM PT: RadioShack officially filed for Chapter 11 bankruptcy on Thursday, February 5, and announced plans for a deal with Sprint. An asset Purchase agreement with Standard General (RadioShack's largest shareholder) and Sprint will allow the RadioShack name to live on via a "store-in-store" model in some of the 2,400 shops (out of 4,000) it plans to sell. The remaining underperforming stores will be closed.

Top Rated Comments

illegalprelude Avatar
122 months ago
More than anything else, heart always goes out to the employees who are affected by these huge closures.
Score: 11 Votes (Like | Disagree)
maflynn Avatar
122 months ago
Sad to see them go, my very first computer was a TRS color computer with 4k of ram, way back in the day :(
Score: 9 Votes (Like | Disagree)
jayducharme Avatar
122 months ago
do people still buy Ham and CB radios? what the status of those hobbies these days?
They do. But not from Radio Shack anymore. There are lots of online dealers and a few brick-and-mortar that often catering to truckers. I went to The Shack to get a CB antenna a while back, but was told they no longer carry them.

IMO, when Radio Shack abandoned hobbyists, they lost sight of who they are. Are they a smaller Best Buy? Are they a local Sprint store? Are they Brookstone? Are they Sharper Image (R.I.P.)? No one goes there because no one has a reason to. They're not about lower prices. They're not about all of the latest gadgets. So just who are they? I'm not sure they know.
Score: 4 Votes (Like | Disagree)
nt5672 Avatar
122 months ago
do people still buy Ham and CB radios? what the status of those hobbies these days?

Who wants to use/buy a 2 way radio that is free to use forever after you pay for the transceiver, when you can be locked into a $150/month 2 year phone plan with pages and pages of limitations, fees, and taxes.

Oh right, you do have to learn a little bit about radio waves and frequencies, and that is so geeky.
Score: 4 Votes (Like | Disagree)
extricated Avatar
122 months ago
Sorry to hear that.
I hardly ever go into a Radio Shack, but when I do, it's for something that I can't find anywhere else. I guess online ordering will bridge that gap now.
Score: 4 Votes (Like | Disagree)
lolkthxbai Avatar
122 months ago
I'm just waiting until I can get a ton of switches, resistors and leds for cheap! Bring on the fire sale!
Score: 3 Votes (Like | Disagree)

Popular Stories

iOS 18 CarPlay Feature

iOS 18 Adds These 5 New Features to CarPlay

Thursday June 13, 2024 7:44 am PDT by
Apple did not mention CarPlay during its WWDC keynote this week, but iOS 18 includes a handful of new features for the in-car software. Overall, there is not a whole lot new for CarPlay on iOS 18, with changes seemingly limited to the Messages and Settings apps so far. Below, we recap everything new for CarPlay on iOS 18. New for CarPlay on iOS 18 1. Contact Photos in Messages App...
ios 18 button bulge

iOS 18 Adds Pop-Out Bezel Animation When Pressing iPhone Buttons

Tuesday June 11, 2024 10:40 am PDT by
iOS 18 includes a small but interesting change for the buttons on the iPhone, adding more of a visual element when changing volume, activating the Action button, or locking the screen. When you press an iPhone button in iOS 18, the display bezel bulges outward slightly. This feature is available for the volume buttons, Action button and the power button, and it will also likely be used for...
maxresdefault

First Look at Messages via Satellite in iOS 18

Thursday June 13, 2024 11:29 am PDT by
Apple has been gradually expanding its suite of satellite connectivity features for iPhone, and iOS 18 brings a significant new one in the form of Messages via satellite. The feature allows users to send and receive iMessages and SMS texts, including emoji and Tapbacks, while out of range of cellular and Wi-Fi networks. CNET met up with Apple's senior director of platform product marketing,...
iOS 18 Wallet Feature

Here's What's New in Apple Wallet on iOS 18 for Event Tickets and More

Friday June 14, 2024 7:32 am PDT by
iOS 18 includes a handful of enhancements to the Wallet app on the iPhone, with new features for Apple Pay, Apple Cash, event tickets, and more. Below, we outline everything new for the Wallet app on iOS 18, based on information from Apple's press release and a WWDC 2024 coding session. Redesigned Event Tickets Event tickets have an all-new design in the Wallet app on iOS 18, complete...